Rareview Capital Debuts Commodity ETF Tracking Bloomberg Benchmark

The new ETF tracks the Bloomberg Commodity Index Total Return, which currently covers 24 futures contracts across 22 distinct commodities. To maintain stability, the index applies weight caps of 15% for individual commodities and 33% for specific sectors. Asset allocation within the index is determined by a two-part formula: two-thirds of the weighting is based on liquidity and trading volume, while one-third is weighted by world production and economic significance.

Neil Azous, founder and CIO of Rareview Capital, views this launch as a response to a structural shift in modern portfolio construction. According to Azous, the traditional 60/40 split between stocks and bonds is increasingly evolving toward a 60/30/10 model, where commodities serve as a permanent, non-tactical component. By utilizing the Bloomberg Commodity Index, the firm aims to provide systematic exposure without requiring advisors to forecast the performance of individual assets like energy or metals.