Bloomberg Commodity (BCOM) IndicesBloomberg Commodity (BCOM) indexes are a family of financial benchmarks designed to provide liquid and diversified exposure to physical commodities via futures contracts. The index currently represents 20 commodities which are weighted to account for economic significance and market liquidity and 22 exchange-traded futures contracts. The index takes exposure to an equally weighted basket of Underlying indexes (subindexes). The Underlying indexes includes the following: BCOM Energy, BCOM Agriculture, BCOM Precious Metals, and BCOM Industrial Metals.
FTSE NAREIT Equity REIT IndexFTSE NAREIT Equity REIT Index is a market-capitalization-weighted index of all publicly traded REITs that invest predominantly in the equity ownership of real estate. The index is designed to reflect the performance of all publicly traded equity REITs as a whole.
FTSE EPRA/NAREIT Developed IndexFTSE EPRA/NAREIT Developed Index is designed to track the performance of listed real-estate companies and REITs in developed countries worldwide.
FTSE EPRA/NAREIT Developed Index ex US REITs IndexFTSE EPRA/NAREIT Developed Index ex-U.S. REITs Index is designed to track the performance of listed real estate companies in developed countries worldwide other than the United States.
Sources: Bloomberg and Wells Fargo Investment Institute, as of September 30, 2022. YTD = year to date. YOY = year over year. REIT = real estate investment trust. For illustrative purposes only. Indexes in order represented by Bloomberg Commodity Index, Bloomberg Energy Subindex, Bloomberg Agriculture Subindex, Bloomberg Precious Metals Subindex, Bloomberg Industrial Metals Subindex, FTSE All Equity REITs Index, FTSE EPRA/NAREIT Developed Index, FTSE EPRA NAREIT Developed ex-U.S. REITs Index. Yields represent past performance and fluctuate with market conditions. Current yields may be higher or lower than those quoted above. Past performance is no guarantee of future results. An index is unmanaged and not available for direct investment. Investing in commodities and REITs are not appropriate for all investors. The commodities markets are considered speculative, carry substantial risks, and have experienced periods of extreme volatility. Investments in the energy sector are subject to the adverse economic events that occur within that industry. Investing in precious and base metals carries additional risks and may subject an investment to greater share price volatility. Base metals cannot be held physically and are not easily converted to cash. Real estate has special risks, including the possible illiquidity of the underlying properties, credit risk, interest rate fluctuations, and the impact of varied economic conditions. Foreign investing involves risks typically not associated with investing domestically, including currency, transaction, volatility and political and regulatory uncertainty. These risks are heightened in emerging markets. See “Index Definitions and Asset Class Risk Disclosures” link above for index definitions.
- Energy commodities continued to outperform the other Commodities sectors in the third quarter of 2022, driven by sharp increases in natural gas prices. Oil prices have come down on concerns that demand may diminish with an economic slowdown, despite concerns over tight supply.
- Precious metals have lagged, but we expect concerns surrounding economic growth and the volatile market environment to support gold prices over the remainder of 2022.