Brazil, Russia, India and China, also known as BRIC, make up 28% of world economic growth and can be bought in one exchange traded fund (ETF). There is currently the Claymore BRIC (EEB) and today State Street launches the SPDR BRIC 40 (BIK).
These countries are expected to continue growing at rates faster than any other developing nation over the next decade. Jonas Elmerraji for TheStreet.com reports ETFs have a lot more access to foreign stocks than most individual investors do, so if you want to participate in this growth, EEB and BIK may be the way to go.
EEB launched last September and is up 60%. The country breakdown is Brazil 45.9%, Russia 4.8%, India 13.6% and China 35.8%.
BIK begins trading today and the ETF allocates 22.8% to Brazil, 32.3% to Russia, 7.3% to India and 37.6% to China.
If you plan on allocating some of BRIC to your portfolio, it will be important to look inside the ETFs and see which one fits your goals. As you can see the country weightings are different, so these ETFs will not perform the same way. Don’t forget to set stop-losses.
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.