It’s a BRIC House in the ETF Industry
October 5th at 12:30pm by Tom Lydon
As we finish out a strong week for the markets, we see that BRIC exchange traded funds (ETFs) are still among the top performers. China and India have made headlines with their tremendous economic growth and rapidly rising gross domestic products (GDPs). In fact, in the first half of 2007, the increase in consumer spending (in actual
terms) in China and India together contributed more to global GDP
growth than America’s increase did.
Brazil has been greatly benefiting from our weak dollar. Its currency, the real, recently gained 0.21% to 1.867 per U.S. dollar, and its stock market has hit record closes. Meanwhile, Russia’s economy also has had good news. Some experts predict that Russia’s GDP could grow 7.5% in 2007. For investors interested in BRIC ETFs, consider EEB and BIK with their year-to-date performance:
- Claymore/BNY BRIC (Brazil, Russia, India, China) ETF (EEB) – up 50.1%
- SPDR S&P BRIC (Brazil, Russia, India, China) 40 ETF (BIK) – up 23.2% for the last three months, having launched in June.
For full disclosure, some of Tom Lydon’s clients own EEB.
