BRIC ETF

AAA

DEFINITION of 'BRIC ETF'

An exchange-traded fund that invests in stocks and listed securities associated with the countries of Brazil, Russia, India and China. BRIC ETFs are designed to give holders diversified exposure to these growing countries. Assets are invested in both locally issued stocks and shares that trade on exchanges in the U.S. and Europe. The portfolio allocation among the four counties may vary from fund to fund, but all ETFs in the space should be passively invested around an underlying index.

INVESTOPEDIA EXPLAINS 'BRIC ETF'

Investing in the BRIC economies has been on the rise as increased economic globalization creates higher levels of world trade and commerce. Brazil, Russia, India and China have had strong growth in gross domestic product (GDP) over the past few decades, with recent rates much higher than those found in the United States and the Eurozone. BRIC ETFs may carry slightly higher expense ratios than funds focused on the U.S. and Europe due to the higher costs of investing directly in these foreign stock markets.

VIDEO

RELATED TERMS
  1. Asian Century

    The dominant role that could be played by Asia in the 21st century, ...
  2. Taiwan, Israel, Chile and Korea ...

    An investment theme focusing on four economies that rank between ...
  3. CIVETS (Colombia, Indonesia, Vietnam, ...

    An acronym given to the countries Colombia, Indonesia, Vietnam, ...
  4. Emerging Market ETF

    An exchange-traded fund that focuses on the stocks of emerging ...
  5. Brazil, Russia, India And China ...

    An acronym for the economies of Brazil, Russia, India and China ...
  6. Dow Jones BRIC 50 Index

    A market capitalization-weighted stock index containing 50 of ...
Related Articles
  1. Broadening Your Portfolio's Borders
    Investing Basics

    Broadening Your Portfolio's Borders

  2. Advantages And Disadvantages Of ETFs
    Mutual Funds & ETFs

    Advantages And Disadvantages Of ETFs

  3. Go International With Foreign Index ...
    Mutual Funds & ETFs

    Go International With Foreign Index ...

  4. An Evaluation Of Emerging Markets
    Fundamental Analysis

    An Evaluation Of Emerging Markets

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center