The Guggenheim BRIC ETF (NYSEArca: EEB) is set to get more of a BRIC feel when issuer Guggenheim changes EEB’s index in October. EEB, which is nearly seven years old and home to $214.7 million in assets under management, will drop the BNY Mellon BRIC Select ADR Index in favor of the BNY Mellon BRIC Select DR Index.
EEB is currently more “BIC” than BRIC as the fund is noticeably light on Russia exposure. Russia, the “R” in BRIC and the world’s largest oil producer, accounts for just 2.32% of EEB’s weight. By comparison, China is 23.8% of the ETF’s weight while Brazil dominates at almost 46.1%. [BRIC ETFs Get Hit With Outflows]
EEB will also, for the first time, be able to own Hong Kong-listed China H-Shares, reports Hung Tran for Index Universe. As EEB increases its Russia exposure with the index change, the fund’s allocations to Brazil and China could be reduced while its weight to the energy sector, already the ETF’s largest at 23.3%, could increase.
Despite the calamity facing emerging markets equities in recent weeks, EEB has managed to notch a small gain over the past month.
Among popular, diversified emerging markets ETFs, the WisdomTree Emerging Markets Equity Income Fund (NYSEArca: DEM) has one of the largest weights to Russia at 19.2%. That makes Russia DEM’s largest country weight and that leads to energy being the ETF’s second-largest sector exposure at 21.2% behind financial services. [BRIC ETFs Still Face Hurdles]