Facts & Resources

Bank of America Merrill Lynch Announces Year-end Rebalancing Changes for the Merrill Lynch Commodity Index eXtra℠

Friday, December 11, 2015 10:00 am EST



Public Company Information:


Following an annual review in accordance with its rules, the target constituent weights for the BofA Merrill Lynch Commodity Index eXtra (MLCX) will rebalance to the values shown in Table 1 below on December 31, 2015. Similar changes will propagate across the MLCX sub-indices.

Cotton will be removed from MLCX at the December 31 rebalancing, as it does not meet the quantitative criteria for selection and an exception is no longer deemed by the Index Committee to be appropriate. Of the contracts that remain in the index, Brent Crude Oil will decrease the most vs. last year’s target weight (-0.80 percent), and Live Cattle will increase the most (+1.09 percent).

MLCX is designed to provide a liquid, consistent, representative and cost-efficient benchmark for measuring commodity market performance. The index has representation in six key market sectors: Energy, Base Metals, Precious Metals, Grains & Oil Seeds, Livestock, and Soft Commodities & Others.

Table 1: MLCX contract weights

Commodity     2015     2016       Change    
Brent Crude Oil 28.923196% 28.116845% -0.806351%
Gasoil 11.935934% 12.181546% 0.245612%
Gasoline (RBOB) 11.568973% 12.002656% 0.433683%
Wheat 6.243975% 5.832795% -0.411180%
Copper 5.279892% 5.647866% 0.367974%
Crude Oil (WTI) 5.353026% 5.189844% -0.163182%
Corn 5.626604% 5.069962% -0.556642%
Gold 4.237603% 4.677434% 0.439831%
Aluminum 3.071052% 3.716389% 0.645337%
Live Cattle 1.972701% 3.058645% 1.085944%
Soybean Meal 2.865186% 2.560466% -0.304720%
Natural Gas 2.218872% 2.509109% 0.290237%
Sugar 2.528880% 2.467653% -0.061227%
Coffee 1.083545% 1.433921% 0.350376%
Soybean 1.580864% 1.346286% -0.234578%
Zinc 1.004851% 1.272907% 0.268056%
Lean Hogs 1.027299% 1.179683% 0.152384%
Nickel 0.877897% 1.122229% 0.244332%
Silver 0.603848% 0.613764% 0.009916%
Cotton 1.995803% 0.000000% -1.995803%
Source: BofA Merrill Lynch

Table 2: MLCX sector weights

      2015       2016       Change    
Energy 60.000000% 60.000000% 0.000000%
Grains & Oilseeds 16.316628% 14.809509% -1.507119%
Base Metals 10.233692% 11.759391% 1.525699%
Precious Metals 4.841451% 5.291198% 0.449747%
Livestock 3.000000% 4.238328% 1.238328%
Soft Commodities & Others 5.608228% 3.901574% -1.706654%
Source: BofA Merrill Lynch

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