'BRIC' ETF Investing: An Introduction

Getting Started With BRIC ETFs

While each of these countries have American depository receipts (ADRs) that trade here in the U.S., an ETF is far and away the simplest way to buy into BRIC.

Typically, the way to invest in BRIC is by buying an "emerging-markets ETF" that focuses on a region of the BRIC foursome that you're interested in. This way, if you're big on China but less bullish about Russia, you can focus mainly on ETFs whose portfolios are weighted more heavily in that direction. For a look at some funds as well as their BRIC breakdowns, check out "The BRIC is Back."

Researching BRIC ETFs

It's a good idea to look into the ins and outs of your potential BRIC ETF investment a little more carefully than you would a domestic ETF. That's because investing in a BRIC index carries with it some unique risks.

With BRIC investing, the political climate is of particular significance. While this is true of most foreign investments, countries like China are in an elevated position on the world stage. While this global attention can be a bad thing, it has seemingly been more beneficial of late.

BRIC ETFs aren't fundamentally different from any other exchange-traded fund. You'll still want to take the time to analyze the investment information available to make sure that a given BRIC ETF makes sense for your portfolio. (To learn more about what to look for when you research an ETF, visit the TheStreet.com's ETF Center.)

The BRIC Oven

BRIC ETFs are definitely hot right now, and they don't show any signs of cooling down. Investors are pouncing on the opportunity to expand their portfolios with the world's big four growth economies all wrapped up in the simple package that an ETF provides.

While those potential returns come with added risk, if recent history is any indicator of where these markets are going, the future looks pretty bright for BRIC ETFs.

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