In 2007, BRIC-centric exchange traded funds (ETFs) were powerhouses. So far, 2008 is telling a different story.
The Claymore/BNY BRIC Fund (EEB) has seen challenges in some of its four countries – Brazil, Russia, India and China. From its all-time high, it’s down 19%, reports Gary Gordon for ETF Expert, and the gains upward of 65% in 2007 feel like a memory. Year-to-date, the fund is down 10.7%.
Take heart, though: it’s still above its long-term trend line (200-day moving average).
Gordon feels that the fund is still attractive, though: it has a low price and allows investors access to all four emerging markets without being overweight in any single country or having to purchase four separate ETFs. It takes the guesswork out of trying to pinpoint which emerging economy is going to perform.
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.