Of note to those considering BBRC, the ETF transitioned to the FTSE Beyond BRICs Index in October. The FTSE Beyond BRICs Index generally has 75% exposure to companies in more developed emerging markets (excluding Brazil,Russia, India, China, South Korea and Taiwan) and 25% exposure to companies in frontier markets, which are less developed. [Beyond BRICs ETF Moves to new Index]
That means Qatar and Nigeria currently combine for almost 20% of BBRC’s weight and the ETF offers light exposure to the likes of Kenya, Oman and Sri Lanka, among others.
EMBB is perhaps the more conservative option. After the large weights to South Korea and Taiwan, South Africa and Mexico combine for almost 28% and the fund, which is just six weeks old, features no frontier markets in its lineup. [Two ETFs for Beyond BRICs Exposure]
Both funds are heavy on financial services names, but BBRC is somewhat conservative at the sector level as telecom and staples stocks combine for 31%. After its 28.1% weight to financials, EMBB devotes a combined 34% to technology, materials and discretionary names.
In the current environment for emerging markets ETFs, the most important trait for BBRC and EMBB may just be that Brazil, Russia, India and China are nowhere to be found in these funds.
EGShares Beyond BRICs ETF
Tom Lydon’s clients own shares of EEB.