MSCI BRIC Index

AAA

DEFINITION of 'MSCI BRIC Index'

An index measuring the equity market performance of the emerging market indices of Brazil, Russia, India and China. The MSCI BRIC Index is one of MSCI's Regional Equity Indices, and is a free float-adjusted, market capitalization weighted index of four of the biggest emerging market economies. Prior to this index, MSCI launched the first Emerging Markets Index in 1988, focusing on 21 markets.

INVESTOPEDIA EXPLAINS 'MSCI BRIC Index'

The term BRIC first appeared in a 2001 Goldman Sachs report called "Building Better Global Economic Brics." The paper correctly forecasted that the weight of the BRIC economies (particularly China) in global GDP would grow significantly.

Investors can gain exposure to BRIC markets through an increasing variety of instruments, including ADRs (American Depositary Receipts), closed-end funds, ETFs and mutual funds. In 2007, for example, iShares launched the MSCI BRIC Index ETF. Investing in BRICs, however, carries inherent risks because the markets are not fully developed. Risks such as lack of transparency, undeveloped regulatory systems, liquidity issues and volatility can affect the performance of investments.

RELATED TERMS
  1. Index

    A statistical measure of change in an economy or a securities ...
  2. Weighted Average

    An average in which each quantity to be averaged is assigned ...
  3. Dow Jones Industrial Average - ...

    The Dow Jones Industrial Average is a price-weighted average ...
  4. Emerging Market Economy

    A nation's economy that is progressing toward becoming advanced, ...
  5. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  6. Welfare Capitalism

    Definition of welfare capitalism.
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. Mutual Funds & ETFs

    Should You Invest In Emerging Markets?

    Emerging markets are risky, but the rewards they can create make them a worthy addition to any portfolio.
  3. Mutual Funds & ETFs

    Understanding BRIC Investments

    Brazil, Russia, India and China are becoming more popular for investing, but there is still plenty of risk among BRIC countries.
  4. Economics

    What Is An Emerging Market Economy?

    Emerging markets provide new investment opportunities, but there are risks - both to residents and foreign investors.
  5. Options & Futures

    An Introduction To Emerging Market Bonds

    The rewards associated with this fixed-income asset are significant, but so are the risks.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

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

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