Five ETFs for Good 'BRIC' Plays

By Kevin Grewal, editorial director at www.SmartStops.net

NEW YORK (TheStreet) -- Last year was great for Brazil, Russia, India and China, better known as the BRIC nations, as equities that track these regions of the world performed remarkably and their future remains bright.

For one reason, BRIC nations should experience economic growth. According to the International Monetary Fund, all four of the BRIC nations are expected to show GDP growth in 2010, with China leading the way at 8.5%, followed by India at 6.5%, then Brazil at 2.5% and Russia at 1.6%.

China

China has numerous forces in its favor and thanks to its current macroeconomic policy, which continues to add liquidity to its economy, it is expected to emerge from the global recession economically stronger than ever. Chinese manufacturing is showing its strengths, suggesting expansion all across the board and industrial companies have been posting record profits.

A second positive factor supporting China is the strengthening of its exports. As economies around the world continue to emerge from the global recession, Chinese exports are likely to increase. Additionally, the passage and implementation of the world's third-largest free trade agreement between China and ASEAN's 10 Southeast Asian nations will likely be beneficial to Chinese exports. Lastly, private investment in the first half of the year is expected to increase as domestic demand increases and exports strengthen.

A good way to invest in China is through the iShares FTSE/Xinhua China 25 Index (FXI), which has rallied nearly 41% over the last year and closed at $44.03 on Tuesday.

India

Some factors that make India appealing include an increase in business confidence, strong equity markets, an abundance of young intelligent workers and a high savings rate. Additionally, rising incomes amongst the extremely poor will likely increase the demand for basic goods and services. Lastly, manufacturing continues to show signs of expansion.

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