NEW YORK (TheStreet) -- The BRIC nations are popular for both investors and fund providers. Today, the ETF industry lists a wide collection of products designed to allow investors to tap into the markets of Brazil, Russia, India and China from a number of different perspectives.

The field of BRIC-related ETFs was expanded late last week with the launch of

Van Eck's Market Vectors Russia Small Cap ETF

(RSXJ) - Get VanEck Vectors Russia Small-Cap ETF Report

. The first fund of its kind, RSXJ provides investors with exposure to a diverse collection of small companies based in Russia.

So far, the fund has seen limited interest and is still vulnerable to liquidity issues. I urge investors to hold off on RSXJ until it gathers steam.

Despite my hesitations, the launch of RSXJ marks an exciting event for the BRIC ETF universe. With its introduction, investors can now gain small-cap access to all four BRIC nations. Small companies in Brazil, India, and China can be accessed using the

Market Vectors Brazil Small Cap ETF

(BRF) - Get VanEck Vectors Brazil Small-Cap ETF Report


Market Vectors India Small Cap ETF

(SCIF) - Get VanEck Vectors India Small-Cap Index ETF Report


Guggenheim China Small Cap ETF

(HAO) - Get Invesco China Small Cap ETF Report


Small cap BRIC funds have usually been viewed as promising tools for investors looking to target these nations' rapidly growing domestic populations. For instance, the

iShares MSCI Brazil Index Fund

TheStreet Recommends

(EWZ) - Get iShares MSCI Brazil ETF Report

provides investors with exposure to the largest and most liquid companies based in Brazil and the fund's index is dedicated to large international companies such as


(PBR) - Get Petroleo Brasileiro SA Sponsored ADR Report

and Vale. Due to their reach across the globe, the performances of these firms are not entirely dependant on the state of Brazil's economy.

The small companies underlying BRF, on the other hand, are more likely to do the bulk of their business with Brazilian customers. Therefore, their performance will be determined based on the strength of the nation's domestic consumer class.

On top of providing investors with strong exposure to its respective nation's domestic population, small cap emerging market ETFs are traditionally viewed as being more volatile than funds designed to capture large cap market leaders. Investors with a tolerance for risk may find the added upside potential attractive.

While some may find small cap BRIC funds attractive substitutes for large cap cousins, it is also possible to use these funds to compliment international exposure. For instance, investors highly confident in the strength of China's markets may want to enhance their exposure to the nation by pairing a large cap fund such as

iShares FTSE China 25 Index Fund

(FXI) - Get iShares China Large-Cap ETF Report

with HAO. By keeping exposure to HAO small, investors can benefit from the fund's upside potential while protecting from the threat of a downturn.

The advent of exchange traded funds has made international investing not only simple, but essential to the creation of a well-balanced, long-term portfolio. Using these products, domestic investors can expand their investing horizons well beyond the shores of the United States and into popular developed and emerging nations.

Small- cap emerging market funds such as RSXJ represent another exciting evolution in the ETF industry.

Written by Don Dion in Williamstown, Mass.


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At the time of publication, Dion Money Management did not own any of the equities mentioned.