So-called BRIC countries took a backseat to other sectors over the past year, but now they’re getting more attention. For instance, Russia’s single-country exchange traded fund (ETF) grabbed the spotlight recently, as its performance may have signaled a comeback. Are other BRIC (Brazil, Russia, India, China) economies to follow?
Bespoke Investments is claiming a certain pattern in the equities market is revealing itself, says Gary Gordon for ETF Expert: emerging market stocks tend to “peak” before developed country stocks; then, emergers “bottom out” before developed country stock assets; then, emerging equities “recover” before developed world equities.
Although the emerging markets sell-off may have discouraged many investors, the question still remains as to whether the “smart money” has exited. [Emerging Market ETFs: Still In The Game?]
The geopolitical climate is also a factor, as the rebellions in the Middle East have investors on edge and the earthquake in Japan is unraveling even more speculation for would-be investors wading back into the markets.
Some BRIC ETFs include:
- iShares MSCI BRIC Index Fund (NYSEArca: BKF)
- Guggenheim BRIC ETF (NYSEArca: EEB)
- SPDR S&P BRIC 40 ETF (NYSEArca: BIK)
Single-country ETFs for the group include:
- Market Vectors TR Russia (NYSEArca: RSX)
- iShares MSCI Brazil Index (NYSEArca: EWZ)
- SPDR S&P China (NYSEArca: GXC)
Tisha Guerrero 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.