I confess I jumped on the ETF bandwagon about a year ago and I am glad I did it. My returns have been much better than what my mutual funds were generating. BLDRs Emerging Markets (NASDAQ:ADRE), iShares Emerging Markets (NYSEARCA:EEM) and iShares Malaysia (NYSEARCA:EWM) (37.44%, 30.66%, 30.66% YTD respectively) have boosted my portfolio performance over the last 12 months.
Now that I have bit of confidence, I wanted to go for much broader and diverse play in the markets that are expected to do well in the next 5 to 10 years: more specifically BRIC markets. Standard & Poor's BRIC 40 Index Based SPDRs (NYSEARCA:BIK) started trading a few months ago and it caught my attention. This seems to be a very reasonable and exciting way to participate in Brazil, Russia, India and China markets. All of these markets are experiencing phenomenal growth due to demand for their natural resources or growing economies and markets.
S&P BRIC 40 is comprised of blend of large cap stocks. The companies represented in the index are well proven companies leveraging their size and their markets to grow at a very rapid pace. If the general market trends in BRIC countries are of any indication, BIK offers lot of potential for significant returns as these markets grow in the coming decade.