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

Loading the player...
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. Investing Basics

    Broadening Your Portfolio's Borders

    Find out what type of international fund might suit your needs in gaining exposure to foreign markets.
  2. Mutual Funds & ETFs

    Advantages And Disadvantages Of ETFs

    You've probably heard that ETFs are better than mutual funds, but you need to consider all aspects before investing.
  3. Mutual Funds & ETFs

    Go International With Foreign Index Funds

    As global trade continues to expand and the world's economies grow, spice up your portfolio with these exciting opportunities.
  4. Fundamental Analysis

    An Evaluation Of Emerging Markets

    Get the full story on this asset class before you write it off as too risky.
  5. Investing Basics

    Why Country Funds Are So Risky

    High returns come at a price, but country funds may still be a good bet.
  6. Economics

    What Is An Emerging Market Economy?

    Emerging markets provide new investment opportunities, but there are risks - both to residents and foreign investors.
  7. Mutual Funds & ETFs

    Exchange-Traded Funds (ETFs)

    This vehicle combines the diversification of a mutual fund with the flexibility of a stock. Learn more about them here.
  8. Economics

    The Fed's Impact On Emerging Markets

    Higher US interest rates could make it more expensive for emerging market borrowers to service their debt commitments.
  9. Investing

    Can Europe’s QE Be A Stimulus For U.S. Investors?

    Finding value in today’s markets has been difficult, so many investors are turning to opportunities outside of the U.S. But where should they look?
  10. Mutual Funds & ETFs

    How To Create Your Very Own ETF

    ETFs are useful investment tools, and now thanks to Motif Investing, investors can create their own with ease.

You May Also Like

Hot Definitions
  1. Loan-To-Value Ratio - LTV Ratio

    A lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage.
  2. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  3. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  4. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  5. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  6. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
Trading Center