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Two BRIC ETFs changing their approach

  • Guggenheim's BRIC ETF (EEB) - never a true BRIC fund because of a small allocation to Russia - will address that issue by changing its underlying index to the BNY Mellon BRIC Select DR Index from the BNY Mellon BRIC Select ADR index. As the new index name suggests, it will track global depositary receipts instead of just ADRs. The change will also allow the fund to own Hong Kong-listed China H-Shares for the first time.
  • The Emerging Global Beyond BRICs ETF (BBRC) will change to a FTSE index which will allow frontier-market holdings for the first time. The year-old fund has had a tough time competing against established emerging market funds EEM and VWO, but the change should allow for a much different approach than those two giants.
  • Other BRIC ETFs: FNI, BKF, BIK, EMDD, BICK.
  • Frontier Market ETFs: FRN, PMNA, FM.
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Comments (1)
  • Tom Au, CFA
    , contributor
    Comments (6774) | Send Message
     
    If you go by population, an approporiate allocation to China, India, Brazil and Russia would be about 10, 10, 1, 1. So if Guggenheim has at least 4%-5% in Russia, it would be a legitimate BRIC fund.
    28 Aug 2013, 11:00 AM Reply Like
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