Bloomberg Buys UBS Commodity Indexes

June 25, 2014

In summer 2014, Bloomberg will take over management on a lineup of UBS commodities indexes, with terms currently undisclosed.

The indexes will be renamed the Bloomberg Commodity Index Family as of July 1; however, a Bloomberg representative said that the methodology and rebalancing schedule were expected to remain the same.

Approximately 20 percent of the 150 commodity exchange-traded products currently trading are linked to the Dow Jones-UBS Commodity Index family, according to data from ETF.com. Barclays alone has 19 ETNs linked to the Dow Jones-UBS benchmarks, including the $1.6 billion iPath Dow Jones-UBS Commodity Total Return ETN (DJP|A-18). Those products and UBS strategies such as the Etracs DJ-UBS Commodity Total Return ETN (DJCI|B-48) will undergo name changes to reflect the shift in ownership.

ProShares’ and iShares’ strategies that use Dow Jones-UBS indexes are likely to face name changes this summer as well.

The changes in index ownership are simply an expansion of a pre-existing partnership between Bloomberg and UBS, according to the two companies. They had previously launched the UBS Bloomberg Constant Maturity Commodity Index (CMCI) in 2007.

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