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

    Oil Investments Boost Egypt's Recovery Prospects

    Major foreign oil companies have provided a big boost to the Egyptian economy by agreeing to invest around US$17 billion in the country's energy sector.
  5. Investing

    China's Silicon Valley: Zhongguancun

    Just like in the US, several of China's leading tech companies are headquartered in one spot. China's Silicon Valley is Zhongguancun, and it's growing.
  6. Forex

    The Worst Performing Currencies Of 2015

    The U.S. dollar has strengthened over the past year while weakness in Europe and the former Soviet Union has led to declines in those currencies.
  7. Economics

    Fast-Growing Israeli Startups Pulling Investors In

    Due to its government's policies, and an innovative defense sector that offers high-level training, Israel has become fertile ground for tech startups.
  8. Mutual Funds & ETFs

    Which ETF is the Best Bet: VTI or IWV?

    A look at two quality ETFs that offer diversification, low expense ratios, and exposure to the total market.
  9. Fundamental Analysis

    What is a Null Hypothesis?

    In statistics, a null hypothesis is assumed true until proven otherwise.
  10. Economics

    Asian LNG Prices: Not Likely To Rise Anytime Soon

    Asian LNG prices could stay low for an extended period of time, due to low oil prices, less demand and new LNG-producing projects on various continents.

You May Also Like

Hot Definitions
  1. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  2. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  5. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
  6. Currency Carry Trade

    A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase ...
Trading Center