This Day On The Street
Continue to site
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

Look Beyond BRICs for Emerging-Market Investing

The BRIC countries are widely owned. Many funds specialize in just the BRIC markets, the BRICs also dominate broader emerging-market funds. For example, the iShares MSCI Emerging Market ETF (EEM) allocates 42% to the BRIC countries.

Before Brazil, Russia, India and China were "discovered" by the investing masses, they stood to benefit from new investment capital and that is what happened. Ten years ago, emerging-market investing became popular, money flooded in and the markets skyrocketed.

That potential discovery is no longer a catalyst for the BRICs, but is part of the story for the smaller emerging countries and the frontier markets targeted by BBRC.

A big risk factor for BBRC is its large exposure to South Africa, a country that relies heavily on mining gold and platinum. The mining industry has done poorly of late and so have South African equities, which as measured by the iShares MSCI South Africa ETF (EZA) are down 9.5% this year, compared with a decline of 4.2% for EEM.

BBRC can still do well with a struggling South Africa, but when mining rotates back into favor, then the fund will have a chance to do very well.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
2 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBRC $13.67 -1.31%
EZA $43.19 -0.39%
EEM $28.86 -1.50%
AAPL $93.83 -0.47%
FB $101.00 0.00%


Chart of I:DJI
DOW 15,616.29 -298.45 -1.88%
S&P 500 1,812.14 -39.72 -2.14%
NASDAQ 4,220.08 -63.5120 -1.48%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs