BRIC ETFs: Where the Economies Are Today

BRIC countries have been on investors’ radar since 2001, but what a ride it’s been since then. Exchange traded funds (ETFs) that track the group of growing countries have proliferated and offered handsome returns.

In 2001, Goldman Sachs released a report stating that the economies of Brazil, Russia, India and China were expected to become the main drivers of economic growth for the world in the coming decades, says Desicritics. Has that prediction come to pass? (BRIC ETFS to choose from).

Here is a look at the four economies:

Brazil: Brazil has been surpassing expectations and surprising investors around the world. Impressive economic growth, a booming commodity sector and the country’s popular government are receiving worldwide attention, reports Juan Ferero for NPR. The growing middle class and the innovative state programs are all  part of the movement against poverty, and is an example for all developing nations. (More on Brazil).

Russia: High oil prices are the foundation to Russia’s wealth, and as long as oil prices remain elevated it could solidify the country’s gains. But that’s also a risk to the country; Russia will need to diversify into other areas for true long-term stability. Sujata Rao and Sebastian Tong for Reuters report that gross domestic product could grow by 3.1% in 2010 against a previously forecast 1.6 %, while 2011 could see an increase of 3.4%. (Why Russia could see growth).

India: Mehul Srivastave for BusinessWeek reports that India’s $1.2 trillion economy may be among the world’s first to come roaring out of the global recession, as government data showed it grew by 7.9% in the third quarter. Industry grew 9.2%, compared with 5.1% in the year-earlier quarter. Many are thinking that the worst may be behind India, which boasts a young, entrepreneurial population. (Seven more ways to access BRICs).

China: China is considered to be not just an economic leader among the BRICs, but a leader in the entire world. The country has a growing consumer base, a rising middle class and cities that are building up rapidly, positioning the large nation to become an economic superpower. If all goes according to plan, China could be on its way to becoming the world’s second-largest economy, behind the United States and surpassing Germany and Japan on the way. (China’s reverse brain drain; our loss?)

As more evidence of the strength of the BRICs, According to Denis Dymokin for Forbes, the four BRIC countries are discussing a possible increase in their financial contribution to the International Monetary Fund (IMF). (More on the BRIC ETFs.)

Visit our special report on the BRICs for a complete list of all the options for investing in these growing economies.

For more stories about BRIC countires, visit our BRICs  category.