Sunday, July 29, 2007

BRIC ETF - Brazil, Russia, India, China.

Last week was in sign of bears. Many emerging markets were loosing. The highest dip for Brazilian Bovespa Sao Paolo index with -8%. On the other side Shanghai Composite closed with positive 3%. The chart bellow is comparing BRIC index with S&P 500 for last 5 days.

(more details at: )

Today I introduce ETFs having holdings in those countries. BLDRS Asia 50 ADR Index Fund (ADRA), BLDRS Emerging Market 50 ADR Index Fund (ADRE), iShares MSCI Emerging Markets Index Fund (EEM), SPDR S&P Emerging Asia Pacific ETF (GMF), SPDR S&P Emerging Markets ETF (GMM) and Vanguard Emerging Markets ETF (VWO).

EEM lost 9%. Country diversification ;high number of Brazilian shares; didn't play in favour. Also 20% in financial industry is not the best pick after subprime lender issue.
ADRE has 25% Brazilian shares but industry structure is broader. Financial is not weighed so much.
Two thirds of GMF are in Chinese and Taiwanese companies like China Mobile, Taiwan Semiconductors etc. Dominant sectors are information technology and financial
The most country and sector diversified is GMM. None of countries has more that 15%.
VWO has more or less the same country diversification like GMM but financial sector is more weighed.
The winner is ADRA composed mainly from Asian holding and therefore drop for last week is only 4.2%.


0 Responses to "BRIC ETF - Brazil, Russia, India, China."