Composition, weights announced for Merrill Lynch

Bank of America Merrill Lynch last week announced its 2015 composition and weights for the Merrill Lynch Commodity index eXtraSM.
“The MLCX is designed to provide a liquid, consistent, representative and cost-efficient benchmark for commodity market performance and for investment in commodities as an asset class,” according to a Dec. 22 press release.
The MLCX contains the following six market sectors: energy, base metals, precious metals, grains and oil seeds, livestock, and soft commodities and others.
“Bank of America Merrill Lynch constructs the MLCX based on the liquidity of the constituent futures contracts and the value of the global production of each underlying commodity,” according to the release. “The MLCX also seeks to avoid redundant contracts and includes only the most liquid contract per commodity, which is determined by volume and price.”
The commodity weights, which are determined by the Bank of America Merrill Lynch Commodities group pursuant to the MLCX Handbook, a full list can be found here.

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