BRIC ETFs – An emerging investment opportunity

Yes, in the following years, is very likely that BRIC countries will have high economic growth rates, due to consumption growth, natural resources exploitation and cheap labor hand.  Except from those similarities, these countries are not an economic union neither a political one.  So, treating them as a whole is not justified. Each of these countries will grow and develop in his own rhythm and have his own setbacks. If you want to invest, don’t treat them as a block, because they are not. Instead of buying a BRIC ETF, create your own portfolio with stocks and commodities from the region.

Although you will probably cash in a lot of money on medium and long terms investments in BRIC countries, you should analyze every investment you are going to make and the particularities of each and every country. Employing country-specific ETFs is safer than ETFs covering the entire bloc.

Like with any ETF, it is very important to consider things like country stability, trade barriers, monetary policies, market interventions and export levels. Your aim shouldn’t be to invest in BRIC countries on short term. Because these are emergent economies, short-time volatility is high. The best tactic is medium and long-term investments.