Internationally focused investors are avoiding developed markets such as the United States and Europe have set their sights on emerging market exchange traded funds (ETFs).
BRIC ETFs are some of the most popular products designed to track emerging nations, and the acronym stands for Brazil, Russia, India and China. In a BRIC ETF, these countries are all represented to a degree. Don Dion for The Street reports that economic conditions here may mean that emerging market ETFs will be in favor with investors for awhile. [Global ETFs: Where Investors Take Refuge.]
Some of the newer BRIC players include First Trust BICK Index (NASDAQ: BICK) which launched earlier this year, and the First Trust ISE Chindia Index Fund (NYSEArca: FNI), which has managed to outperform their traditional BRIC-focused competitors. The new additions to the old investment theme suggests the interest and popularity that these economies possess.
Nokia is one company that knows the power of the BRIC economies. The world’s top cellphone maker says the four countries are going to be key in its business growth, thanks to domestic demand, according to Reuters. [ETF Strategies for Emerging and Frontier Markets.]
Some of the other BRIC plays include:
- SPDR S&P BRIC 40 ETF (NYSEArca: BIK)
- iShares MSCI BRIC Index (NYSEArca: BKF)
- Claymore/BNY Mellon BRIC (NYSEArca: EEB)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.