Post a Comment
Ten years ago, the world relied on G7 countries to provide world growth but that changed to a point where the world turns to China for most of its growth. China is one of four developing countries with high growth potential with Brazil, India and Russia. They are now known to all as the BRIC countries and while they are very different, they all share a story of stunning growth that has brought them among the economic powers of the world. Think it’s by chance that 3 of the recent&upcoming Olympic games will be held in these countries? Socchi (Russia) and Rio de Janeiro (Brazil) are anxious to show off to the world and match China’s impressive performance in hosting the 2008 Beijing Olympics.
Who belongs in BRIC?
It’s always interesting to see analysts discuss if a country or another does not belong in the group because of specific problems. For Russia, reasons often discussed are its reliance on commodities and its aging population part of a bigger demographic problem. India also often needs to defend its membership in the select group. India is perhaps not yet at the level of the 3 others in terms of income and GDP but it’s potential is certainly comparable to China’s because its demography.
So I thought I would take a look to compare ETF’s for the BRIC countries to those from one of the four specific countries.
So let’s start with China ETF’s
Ticker LONG_COMP_NAME MKT_CAP (millions) last price FEES Return YTD 1Y return
GXC SPDR S&P China ETF 556.22 $71.21 0.59 0.17 75.743
CHIX Global X China Financials ETF 48.95 $13.74 0.65 (2.61) N/A
CHII Global X China Industrials ETF 25.76 $15.08 0.65 (1.22) N/A
CHIQ Global X China Consumer ETF 25.26 $16.79 0.65 2.59 N/A
CQQQ Claymore China Technology ETF 19.10 $27.23 0.7 5.31 N/A
CHIM Global X China Materials ETF 9.37 $13.21 0.65 N/A N/A
CHIB Global X China Technology ETF 3.17 $15.73 0.65 4.01 N/A
CHIE Global X China Energy ETF 2.85 $14.30 0.65 (3.53) N/A
FCHI iShares FTSE China HK Listed Index Fund 57.28 $47.36 0.72 (1.60) 60.589
CZM Direxion Daily China 3X Bull Shares 29.60 $36.39 0.95 1.72 N/A
CZI Direxion Daily China 3X Bear Shares 7.45 $37.85 0.95 (13.52) N/A
FXI iShares FTSE/Xinhua China 25 Index Fund 7,905.10 $40.65 0.73 (2.41) 61.07
HAO Claymore/AlphaShares China Small Cap Index ETF 331.41 $26.86 0.88 3.08 118.066
YAO Claymore/AlphaShares China All-Cap ETF 77.13 $24.74 0.7 (0.71) N/A
TAO Claymore/AlphaShares China Real Estate ETF 59.49 $17.89 0.78 (0.90) 96.362
XPP ProShares Ultra FTSE/Xinhua China 25 49.16 $65.14 0.95 (5.92) N/A
CHXX INDXX China Infrastructure Index Fund - $20.60 0.85 N/A N/A
FXP ProShares UltraShort FTSE/Xinhua China 25 428.92 $8.52 0.95 (1.31) -75.761
PGJ Powershares Golden Dragon Halter USX China Portfolio 455.51 $24.33 0.69 2.28 85.823
Brazil
Ticker LONG_COMP_NAME MKT_CAP (millions) last price FEES Return YTD 1Y return
EWZ iShares MSCI Brazil Index Fund 10,977.47 $72.69 0.65 (1.85) 107.839
BRF Market Vectors Brazil Small-Cap ETF 730.83 $46.56 0.71 (4.03) N/A
BZF WisdomTree Dreyfus Brazilian Real Fund 159.41 $26.55 0.45 0.15 41.392
BZQ ProShares UltraShort MSCI Brazil 25.30 $23.12 0.95 (1.60) N/A
BRXX INDXX Brazil Infrastructure Index Fund 9.62 $21.38 0.85 N/A N/A
India
Ticker LONG_COMP_NAME MKT_CAP (millions) last price FEES Return YTD 1Y return
INP iPath MSCI India Index ETN 1,069.89 $63.83 0.89 0.36 142.971
EPI WisdomTree India Earnings Fund 804.07 $22.40 0.88 2.27 134.893
PIN PowerShares India Portfolio 393.85 $21.78 0.78 (1.00) 109.825
INDY iShares S&P India Nifty 50 Index Fund 38.64 $25.70 0.89 2.21 N/A
ICN WisdomTree Dreyfus Indian Rupee Fund 28.38 $25.68 0.45 2.70 17.553
INDZ Direxion Daily India Bear 2x Shares 4.05 $40.53 0.95 N/A N/A
INDL Direxion Daily India Bull 2x Shares 3.89 $38.89 0.95 N/A N/A
Russia
Ticker LONG_COMP_NAME MKT_CAP (millions) last price FEES Return YTD 1Y return
XRU CurrencyShares Russian Ruble Trust 6.74 $33.96 0.4 3.65 23.154
RSX Market Vectors - Russia ETF 1,854.20 $32.93 0.69 6.86 147.699
RBL SPDR S&P Russia ETF 2.99 $29.94 0.59 N/A N/A
One very surprising fact in my opinion is that I’ve read in many places that investing in a BRIC index ETF was not a good idea because you would be stuck with the two underperformers, Russia and India. Turns out that their 1 year returns are 147.70% (RSX) and 142.97% (INP) which is much higher than the main ETF’s from China and Brazil.
Conclusion
What I think should be drawn is that all four of these countries are very interesting investments and personally I would much prefer investing in a BRIC index than trying to choose the individual country. The margin for error is simply much smaller. So without waiting, here are the main BRIC ETF’s.
Ticker LONG_COMP_NAME MKT_CAP (millions) last price FEES Return YTD 1Y return
BIK SPDR S&P BRIC 40 ETF 428.69 $24.69 0.48 (0.36) 83.412
EEB Claymore/BNY BRIC ETF 1,030.77 $42.14 0.64 - 91.437
BKF iShares MSCI BRIC Index Fund 873.07 $45.37 0.72 0.19 100.098
BRIS Direxion Daily BRIC Bear 2x Shares 3.99 $39.89 0.95 N/A N/A
BRIL Direxion Daily BRIC Bull 2x Shares 3.90 $38.95 0.95 N/A N/A
Similar Posts:
- Top 2011 ETF’s – Country ETF’s
- China (FXI) Alternative That Could Pay Off Big? CIVETS?
- Single Country Investing – Equity or Currency??? Surprising conclusion
- 2010 Stock picks: Emerging and frontier markets
- China ETF Stock Picks
Great post, really interesting. I pretty like the EEB. Expense ratio is not that high considering the performance. I think it’s a good pick for 2010! What do you think?
I’ve recently come across the term BRICIT ( Indonesia and Turkey).
– Mexico, Egypt, Nigeria, Pakistan
What’s next BRICITMENP
hahaha BRICITMENP… that’s quite intense and funny acronym!!
[...] Intelligent Speculator had his ETF picks for BRIC countries. His picks are BIK, EEB, BKF, BRIS and BRIL. [...]
@Zavi – Yes you would think that emerging economies would eventually rebound, some like China have had a difficult time. But in general, yes, agree 100%!
@Cynical Investor – Haha, had not heard that one before either. Not sure how many more they can add:)