For years the BRIC 50 market index has been an index with high hopes and much expectation. Much of these high expectations have been evaporated during recent years. Let us take a further look into this index. BRIC is short for the 4 countries that carry this index: Brazil, Russia, India and China.
The number 50 is related to the 50 largest companies from these 4 BRIC countries. I look at this index with mixed emotions. First and foremost my attention goes out to the 4 BRIC countries that carry this index.
By doing that one cannot but conclude that the sunny outlook of these BRIC countries has not materialized. I have to add on that I sincerely believe that in the long run these countries will pick up the growth path they were once travelling on.
Another aspect of this index, and one that is even more important, is that this market index includes only the 50 largest companies from these BRIC countries. These major companies have already spread their wings to international markets which makes them much less vulnerable for domestic problems.
For me as an investor this offers opportunities. If the economy of the BRIC countries is going down the financial markets in these countries will experience a similar faith. These 50 large companies will see their stock prices go down as well but at the same time this implies entry opportunities.
These 50 companies operate on strong foundations which makes them ideally situated to bounce back hard and fast whenever the markets stabilize. Another point of looking at this index is by its regional impact.
The BRIC 50 index is based upon companies from China (60%), India (15%) and Russia and Brazil with each taking up approximately 10%. So keep in mind that China is overweighed within this index!
iShares BRIC 50 UCITS ETF
I myself opted for the iShares ETF in trading the BRIC 50 as it has a quotation in Amsterdam and you can trade it in Euro’s. It is a physical ETF which means they buy the underlying stocks, a plus in my view.
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iShares BRIC 50 UCITS ETF info:
ETF provider: iShares (BlackRock)
Exchange: Euronext Amsterdam
The iShares BRIC 50 UCITS ETF has quotations on different exchanges and is known under several ticker symbols. As long as the ISIN number is identical you are dealing with the same ETF.