The BRIC emerging market exchange traded funds (ETFs) have taken off in recent years, and there is still room for exponential growth. Both Morgan Stanley and Bloomberg report that analyzing the total valuation of the stock markets in Brazil, Russia, China and India, combined with their total gross domestic product, lead them to believe the room for growth is there. Money Management reports that BRIC markets are valued at $1.71 trillion, only 25% of their GDP, where stocks in industrialized nations account for 81% of GDP.

BRICs are still in the infancy of their rally and the markets are still not at the point where they are representative of the overall economy. Emerging markets are volatile, and the consequence is when one drops in value, the others could fall like a domino effect.

BRIC ETFs include:

  • Claymore/BNY BRIC ETF (EEB) – up 51.3% year-to-date
  • SPDR S&P BRIC 40 ETF (BIK) – up 32.4% for the last three months, having launched in June.

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.