Looking at the price-to-earnings, Russian stocks are the cheapest, trading at around 6 times forecast earnings, while the others are hovering around 16 to 18 times, compared to the 14 for the S&P 500. Nevertheless, the Eurozone and oil prices weigh on Russian equities.
Brazil, on the other hand, is suffering from lower investments from both the public and private sectors, which account for 19% of GDP. Deutsche Bank believes investments would have to rise to 22% to bring Brazil back to a 4.5% growth rate.
Both China and India would do better with falling commodity prices as the economies grapple with inflationary pressures. India still enjoys a large young population to bolster its workforce. China launched a stimulus packages and will shift away from export growth to domestic consumption.
Broad BRIC ETFs include:
- iShares MSCI BRIC Index Fund (NYSEArca: BKF): up 11.5% over the past year
- Guggenhiem BRIC ETF (NYSEArca: EEB): up 3.3% over the past year
- SPDR S&P BRIC 40 ETF (NYSEArca: BIK): up 11.2% over the past year
For more information on the BRIC countries, visit our BRICs category.
Max Chen contributed to this article.