Raj Dhamodharan

Building With BRICs: Create Your Own "Pseudo-ETF"

here is the link randv.blogspot.com/200...

Building With BRICs: Create Your Own "Pseudo-ETF"

Great article and opens up an important debate. I agree with the author on Claymore BRIC ETF EEBs disproportionate allocation among BRIC countries. But I don't agree with the premise that one will get the upside potential BRICs via individual companies with business in those countries. The infrastructure, environment issues in these countries will be partly solved by companies and mostly have to be solved by massive investments by the governments. Some of the big investments required to improve infrastructure may have very poor profit potential for companies to participate in.
I would also argue that the individual stocks have higher risk than the broader market. I just happened to write a blog on BRIC exposure in various ETFs .