Dow Jones BRIC 50 Index

AAA

DEFINITION of 'Dow Jones BRIC 50 Index'

A market capitalization-weighted stock index containing 50 of the most liquid and largest companies operating in Brazil, Russia, India and China (BRIC nations). The index uses the Dow Jones Global Indexes as its stock universe for the four nations, which cover approximately 95% of the market capitalization on local exchanges. Fifteen positions are targeted for each Brazil, Russia and China, while Russia's representation is targeted for five positions.

INVESTOPEDIA EXPLAINS 'Dow Jones BRIC 50 Index'

Selection for the index is based on a ranking system that looks equally at free-float market capitalization and average daily volume. The top 10 ranked stocks in each sub-index are selected, along with a customized selection of five more between the rankings of 11 and 20 (these numbers are prorated for Russia).

The index is reconstituted annually and weightings are adjusted quarterly. No single stock can make up more than 10% of the BRIC 50 Index.

BRIC investing has become a trendy strategy, as these nations represent large, developing economies that are becoming more and more involved in the global economy. China representation is sought only in the offshore market, where H-shares and American Depositary receipts are available on different stock exchanges.

RELATED TERMS
  1. EAGLES

    An acronym introduced by Spanish bank BBVA in 2010 to describe ...
  2. Brazil, Russia, India, China And ...

    An acronym for the combined economies of Brazil, Russia, India, ...
  3. Tiger Economy

    A nickname given to the economies of Southeast Asia. Some of ...
  4. H-Shares

    A share of a company incorporated in the Chinese mainland that ...
  5. Brazil, Russia, India And China ...

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

    A market capitalization-weighted index of 50 of the largest multinational ...
Related Articles
  1. Investing Basics

    Investing In China

    Investment opportunity is huge in China. However, investors should consider the pitfalls, understand the risks and rewards, focus on shareholder-friendly companies and stick to investments they ...
  2. Bonds & Fixed Income

    How Now, Dow? What Moves The DJIA?

    Find out how this index tracks market movements and where it falls short.
  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. Economics

    What Is Happening To The BRIC Economies?

    Ten years ago, it was about the BRIC countries –Brazil, Russia, India, and China, and it was thought that capitalizing their resources would elevate them.
  5. Economics

    Dilip Shanghvi's Net Worth: How Did He Get So Rich?

    Dilip Shanghvi made Sun Pharma a huge global business through smart acquisitions and strategic entry into the right market sectors.
  6. Economics

    The Economic and Social Effects of Corruption

    Corruption results in inefficiencies in the operations of emerging economies, and prevents such economies from reaching the maximum level of development.
  7. Economics

    Sanctions & Falling Oil Prices Hit Ruble Hard

    Russia, through its aggressive actions, has brought upon itself sanctions which, coupled with falling oil prices, have adversely impacted its economy.
  8. Fundamental Analysis

    What are the most common issues with Serial Correlation in stocks?

    Read about the concept of serial correlation in stock returns, and learn why market analysts are divided about the efficacy of trading based on stock patterns.
  9. Professionals

    How Mukesh Ambani Has Expanded Reliance Industry

    Mukesh Ambani has expanded Reliance Industries and increased its revenues, but his public image, and that of his company, have not fared as well.
  10. Bonds & Fixed Income

    How do I calculate yield to maturity of a zero coupon bond?

    Find out how to calculate the yield to maturity for a zero coupon bond, and see why this calculation is more simple than a bond with a coupon.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center