MSCI BRIC
Encyclopedia
The MSCI BRIC
Equity Index was launched by MSCI Barra in December, 2005.
The index
currently consists of 229 constituents (as of January 31, 2007), and has history back to 30 December, 1994.
The index is market capitalization
weighted and combines the components of the MSCI Brazil, MSCI Russia, MSCI India and MSCI China Equity Indices.
The acronym BRIC
refers to the fast growing developing economies of Brazil
, Russia
, India
, and China
. The acronym was first coined and prominently used by Goldman Sachs
in 2001.
s that track the MSCI BRIC index.
In September 2006, Claymore Securities introduced the Bank of New York BRIC ETF . In June 2007, the SPDR S&P BRIC 40 ETF began trading and was seen as the first competitor to EEB. In November 2007, the third BRIC ETF hit the market when iShares launched the MSCI BRIC Index ETF .
For Australian investors, iShares Australia has released the iShares MSCI BRIC ETF on the Australian Stock Exchange
, which traded under the ticker symbol IBK.
sector.
BRIC
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
Equity Index was launched by MSCI Barra in December, 2005.
The index
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
currently consists of 229 constituents (as of January 31, 2007), and has history back to 30 December, 1994.
The index is market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
weighted and combines the components of the MSCI Brazil, MSCI Russia, MSCI India and MSCI China Equity Indices.
The acronym BRIC
BRIC
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
refers to the fast growing developing economies of Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, and China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. The acronym was first coined and prominently used by Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
in 2001.
Exchange Traded Funds
Investors can gain exposure to BRIC economies by investing in exchange-traded fundExchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
s that track the MSCI BRIC index.
In September 2006, Claymore Securities introduced the Bank of New York BRIC ETF . In June 2007, the SPDR S&P BRIC 40 ETF began trading and was seen as the first competitor to EEB. In November 2007, the third BRIC ETF hit the market when iShares launched the MSCI BRIC Index ETF .
For Australian investors, iShares Australia has released the iShares MSCI BRIC ETF on the Australian Stock Exchange
Australian Stock Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
, which traded under the ticker symbol IBK.
Investing
According to Money Management magazine, investing in BRIC countries can be highly profitable but risky. Principal Global Investors chief executive Grant Forster claims that investing in emerging markets can lead to sector biases, e.g. the Russian market has a 64 per cent exposure to the energyEnergy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...
sector.