Record IPO Flow Helps BRIC ETFs

Petro-China, the state-owned oil and gas group, launched a listing in Shanghai in a deal that raised more than $9bn. That was just the tip of the iceberg of recent BRIC country IPOs. This is good news for exchange-traded funds that track the markets of Brazil, Russia, India and China as well as other emerging markets.

Joanna Chung of the Financial Times reports that nearly half of the $57bn raised globally by IPOs in the latest quarter was by companies in the so-called “Bric” countries of Brazil, Russia, India and China, which produced a record 118 IPOs.

Seven out of the top 10 IPOs in the third quarter were from emerging markets. The Asia-Pacific region, and in particular, China and Hong Kong – had the major share in terms of both the number of IPOs completed as well as the money raised.

The exchange-traded funds that track BRIC countries as a group are as follows:

Claymore/BNY BRIC (Brazil, Russia, India, China) ETF (EEB)
SPDR S&P BRIC (Brazil, Russia, India, China) 40 ETF (BIK)