acronym was all the rage during the first decade of the 21st
century as they led the international markets higher.
The four countries that make up BRIC are
Brazil has had major struggles over the last couple of years,
Russia in engrossed in geopolitical uncertainty,
India has started to make a comeback after years of
underperforming, and China has the risk of a hard landing even
though it is still growing at over seven percent annually.
The world of ETF providers are always looking for the next big
thing in investing and a recent trend has been creating ETFs that
invest beyond the BRIC countries in what may be the next big
emerging market winners.
Beyond BRIC ETFs
The largest of the ETFs in this niche category is the EG
Shares Beyond BRICS ETF (NYSE:
) with $22.3 million in assets. The ETF is a basket of 90 stocks
that invests in the emerging markets, but excludes the BRIC
countries, South Korea, Taiwan and Argentina.
The ETF also invests 25 percent of its portfolio in the
frontier markets, which are not quite at emerging market status.
The countries with the highest exposure in the ETF include ,
South Africa, Malaysia and Qatar.
Over the last 12 months, the ETF is down one percent and it
charges a 0.58 percent expense ratio.
The Global X Next Emerging & Frontier ETF (NYSE:
) is similar to BBRC in that it excludes BRIC countries as well
as South Korea and Taiwan and it has some exposure to the
The top four countries include Malaysia, South Africa, Mexico
and Thailand. The expense ratio is 0.58 percent and the ETF has
not been trading for 12 months as of yet. The ETF has $14.6
million in assets.
Another new entry into the sector is the SPDR MSCI EM Beyond
BRIC ETF (NYSE:
) with $6 million in assets. The portfolio is 100 percent
emerging market stocks with the exception of the BRIC
The top countries include Taiwan, South Africa, South Korea
and Mexico. The expense ratio is 0.55 percent. The major
difference is that EMBB has no exposure to the frontier markets
and has large exposure to South Korea.
For comparison, over the last year the iShares MSCI Emerging
Markets ETF (NYSE:
), which has exposure to the BRIC countries is down less than one
percent; a very similar return to BBRC. An investor that does not
want exposure to the BRIC countries, but does seek to achieve
emerging market exposure now has several options to choose
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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