'BRIC' ETF Investing: An Introduction

ETFs also provide an additional layer of protection, because they're managed by professional fund managers who have experience with international investments. Since financial regulations can be iffy in emerging markets, American investors tend to welcome the expert oversight.

The BRIC ETF Play

You can barely turn on CNBC without hearing about one of the BRIC countries. Politics and international economic policy have driven a lot of media interest, which has certainly helped make appeal of BRIC investing much more mainstream of late. And that appeal is warranted. For example, Claymore's BRIC ETF (EEB Quote) has returned 60% since last September, almost four times what the always popular S&P 500 ETF (SPY Quote) has brought in.

Additionally, many investors have turned to BRIC ETFs as a way of hedging (protecting themselves) against a declining U.S. dollar.

BRIC Breakdown

Brazil: This country is probably the least discussed of the pack. While the other BRIC members have been in the crosshairs of popular media pundits, Brazil's economy has been quietly plugging away. Since March, the Dow Jones Brazil Index has brought in 26%.

Brazil has the largest economy in Latin America, an area whose regional funds have been crushing the competition ("Top ETFs Have a Latin Flavor"). Brazil's investors are dancing the samba all the way to the bank (see "ETF Offers a Taste of Investing in Brazil").

Russia: The Russian economy has taken its share of bumps and bruises (or merciless beatings, depending on your viewpoint) since the fall of the Soviet Union in late 1991. In 1998, the Russian economy collapsed after the devaluation of the ruble. This led to an interesting situation for investors: A massive market move to get out of Russian investments pushed their market values well below what they were worth.