The BRIC countries have become powerful on their own. Now they’re teaming up to demand more clout in global financial institutions and wielding their economic prowess for the good of the developing world…and possibly even the exchange traded funds (ETFs) tracking them.

At a recent summit in Brazil, the group of nations collectively known as the BRICs (Brazil, Russia, India and China) called for reforms of the World Bank and the International Monetary Fund (IMF) to give a greater say to developing nations, reports Stuart Grudgings for Reuters. The group is pressuring developed nations to agree to a November deadline for reforms to be completed. [ETF Strategies for Playing the BRICs.]

BRICs have been largely unsuccessful in agreeing on concrete cooperation in most areas due to differences in national goals and tensions in security and economic policy. The countries have rolled back on talks of setting up a new reserve currency to rival the U.S. dollar and have made no solid steps on forming joint institutions. The group, though, does share interest in dealing with economic inequality, food and energy security. [How to Choose Emerging Market ETFs.]

The BRIC countries have achieved a more united front in putting pressure on advanced countries to concede voting power. The G20 group of major advanced and developing economies has agreed to a quota shift of at least 5% toward developing countries, but some are pushing for a 7% shift. [5 Ways to Play Brazil.]

For more information on BRIC countries, visit our BRICs category.


  • iShares MSCI BRIC Index (NYSEArca: BKF)

  • Claymore/BNY Mellon BRIC (NYSEArca: EEB)

Max Chen contributed to this article.

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.