This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

BRIC Funds Trail Emerging Market Indexes

TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

Exchange traded funds with diverse holdings in emerging markets outperformed "BRIC" investments in the three-month rally that began in March.

Three emerging market ETFs, in the table below, surged as much as 78% in the three months through May. The three best BRIC funds -- with holdings in Brazil, Russia, India and China -- posted gains of up to 70%.

The BRICs were held back by more concentrated investments. While three of the four countries performed well, a single lagging market hobbled results.

TheStreet.com Ratings

Energy and basic materials powered all six of the funds. The SPDR Emerging Europe ETF (GUR) has 50% of its assets in Eastern European energy stocks, two-thirds of which are in Russia. Top holdings include energy giants Lukoil Holdings, Gazprom and Rosneft.

Energy was a major driver in the returns of the three BRIC funds. It's the largest sector in each, making up 33% of the value of the SPDR S&P BRIC ETF (BIK), 28% of the iShares MSCI BRIC Index Fund (BKF) and 25% of Claymore/BNY BRIC ETF (EEB).

Still, the BRICs are down by more than a third over the past 12 months, as oil is at half the level of a year ago. The energy-heavy SPDR S&P Emerging Europe ETF has fallen by about 50%.

The best-performing non-leveraged ETF during the three-month rally was the Market Vector Russia ETF RSX, up 110% for the period. It was followed closely by Claymore/AlphaShares China Real Estate (TAO) and iPath MSCI India Index ETN (INP), both of which surged more than 90%.

But the fact that the best-performing Brazilian ETF, iShares MSCI Brazil (EWZ), was far down the list with an advance of 61% shows that one underperformer can put a drag on returns.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BKF $30.89 0.00%
BIK $19.32 0.00%
EEP $28.52 0.00%
EWZ $25.39 0.00%
GUR $25.14 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs