Loading the player...


A BRIC ETF is an exchange-traded fund (ETF) that invests in stocks and listed securities associated with the countries of Brazil, Russia, India and China (BRIC).


A BRIC ETF is an exchange-traded fund (ETF) invested in securities and exchange-traded instruments from Brazil, Russia, India and China (BRIC). A BRIC ETF is considered any single fund invested in either all four of these countries or any of the four countries. At one point in time there were many BRIC ETFs invested in all four countries, but as the idea of BRIC as a hot market set waned, these funds disappeared, and currently there are only two BRIC ETFs invested in securities in all four BRIC countries. 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.

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 United States 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. 

BRIC Countries

Investing in the BRIC economies was on the rise from the beginning of the twenty-first century through the mid-2010s as increased economic globalization created higher levels of world trade and commerce, and investors were looking for potential for high growth. Brazil, Russia, India and China had strong growth in gross domestic product (GDP) over the past few decades, and because their growth rates and economies were seen as similar to each other and as important emerging economies, BRIC became a popular investment and expansion target. Traders and investors wanted to invest in BRIC local securities, and companies and entrepreneurs wanted to bring their companies to BRIC countries to capture large markets with increasing amounts of capital and increased exposure to the consumption habits of developed nations.

BRIC countries became especially hot investment targets after the American financial crisis or 2008, as the BRIC economies were still on the rise, but because of relative economies, individual securities and ETFs were still affordable to investors. As the American economy recovered and BRIC economies leveled off and the startling growth of the 2000s slowed down, BRIC countries individually were seen more realistically and the concept of BRIC as a singular entity faded from popular thought.

  1. MSCI BRIC Index

    The MSCI BRIC Index is an index measuring the equity market performance ...
  2. Brazil ETF

    A Brazil ETF is an exchange-traded fund that invests in Brazilian ...
  3. EAGLES Investing

    EAGLES is an acronym describing the economies of Korea, Indonesia, ...
  4. ETF of ETFs

    An ETF of ETFs is an exchange-traded fund (ETF) that tracks other ...
  5. Dividend ETF

    A dividend ETF is an exchange-traded fund designed to invest ...
  6. Group of Five – G5

    Group of Five is a designation that has been used to refer to ...
Related Articles
  1. Investing

    Understanding BRIC Investments

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

    Why BRIC Nations Failed to Surpass G7 Economies

    What led the much touted BRIC economies to fail? Here's a sneak peek into the factors that collapsed the prospects of BRIC nations.
  3. Insights

    The Healthiest Emerging Markets in 2015

    2014 was a rough year for several well-known emerging market economies. This year is likely to be better for a select few.
  4. Investing

    ETF Flows: Emerging Market Equity ETFs Shedding Assets (EEM, VWO)

    Discover five exchange-traded funds that invest in emerging market equities and experienced large year-to-date capital outflows as of March 4, 2016.
  5. Investing

    A Look at the Growth of the ETF Industry

    Explore the phenomenal growth of the ETF industry, and learn some of the principal reasons why ETFs are projected to continue growing at a rapid pace.
  6. Insights

    Where To Find Economic Indicator Data For Brazil

    Once an emerging economic powerhouse, the Brazilian economy is now struggling. Here is the list of primary economic indicators and sources to get Brazil's economic indicators.
  7. Investing

    ETF Investing (SPY): Main Attractions

    As the popularity of ETFs soar, here's a look at the main benefits of these investment vehicles.
  8. Investing

    10 Markets Where Vanguard Offers the Cheapest Option (VTI, VV)

    Discover the markets where Vanguard offers the cheapest ETFs. Vanguard is the market leader in providing low-cost diversified funds for long-term investors.
  9. Investing

    The Advantages of ETFs Compared to Index Funds

    With the ongoing ETF boom, ETFs gain more variety and increased competition in the market leads to further investors' advantages compared to index funds.
  10. Investing

    11 ETF Flaws You Shouldn't Overlook

    Despite their popularity, exchange-traded funds, or ETFs, have some drawbacks that investors should know about.
  1. What exactly is an ETF portfolio?

    Learn what exchange-traded funds (ETFs) are and their advantages to investors, what a portfolio of ETFs is, and discover ... Read Answer >>
  2. Do ETFs generate capital gains for shareholders?

    Learn how exchange-traded funds (ETFs) can generate taxable capital gains for shareholders due to occasional and substantial ... Read Answer >>
Trading Center