BRIC ETF Comparisons

There are several BRIC (Brazil Russia India China) exchange traded funds (ETFs) to choose from, so which is the best choice?  Matthew D. McCall for Seeking Alpha reports that what’s inside is just as important, if not more so, than fees.

SPDR S&P BRIC 40 ETF (BIK) has an expense ratio of 0.5%.  BIK is made up of 40 stocks and the top 10 make up 55% of the portfolio.  The country breakdown is as follows: China 44%, Brazil 26%, Russia 25% and India 6%.

iShares MSCI BRIC Index ETF (BKF) has an expense ratio of 0.75%. BKF has 124 stocks, with the top 10 making up 36% of the ETF. Country weightings are: China 36%, Brazil 28%, Russia 20% and India 16%.

Claymore’s Bank of New York BRIC ETF (EEB) has an expense ratio of 0.6%.  EEB has 75 stocks in its portfolio, and the breakdown is: Brazil 46%, China 39%, India 11% and Russia 4%.

Knowing your financial goal is important in selecting an ETF.  If you want exposure to Russia, then EEB may not be the right choice for your portfolio.  Make sure your objectives are in line with the ETF’s holdings.