The BRIC economies (Brazil, Russia, India and China) are red-hot. Emerging Global Shares is targeting these growing economies with related exchange traded funds (ETFs) covering a variety of market caps and sectors.
Emerging Global Shares has filed to launch a group of ETFs aimed squarely at the BRIC economies, according to Cinthia Murphy for Index Universe:
Emerging Global Shares INDXX India Infrastructure Index Fund
- Emerging Global Shares INDXX India Infrastructure Index Fund
- Emerging Global Shares INDXX China Infrastructure Index Fund
- Emerging Global Shares INDXX Brazil Infrastructure Index Fund
- Emerging Global Shares INDXX India Mid Cap Index Fund
- Emerging Global Shares INDXX China Mid Cap Index Fund
- Emerging Global Shares INDXX Brazil Mid Cap Index Fund
- Emerging Global Shares INDXX Growing Asia Large Cap Index Fund
Every single company within these funds will have no more than a 10% weighting. Net operating expenses are pegged at 0.85% for each fund. ALPS Advisors is the advisor for each fund, with Emerging Global Advisors LLC the subadvisor. (Read about the widening wealth shift between the United States and emerging markets).
Each fund will invest in securities, ADRs and GDRs of various companies to replicate their respective indexes. A fully replicating strategy will be used to assemble the funds, however, representative sampling may be used, if needed. (The ultimate guide to the BRIC ETFs). You can read the prospectus for the funds here.
The BRIC economies have been standouts this year as the world recovers from the global financial crisis, gaining about 110% since the market’s low. Russia has been one of the strongest, gaining 137% year-to-date. Brazil has gained 117%, China is up about 60% and India has added about 90%.
For more stories about BRIC ETFs, visit our BRIC category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.