NEW YORK ( TheStreet) -- Emerging Global Shares INDXX India Small Cap Fund ( SCIN) and the Global X Brazil Consumer ETF ( BRAQ) are the latest ETFs to offer targeted investment within a single emerging market.The recent bout of economic turmoil gripping the European Union and China has led many U.S. investors to shy away from not only these two regions, but international markets in general. However, the recent global economic jitters have not been enough to dissuade ETF providers from releasing new products aimed at tracking various slices of some of the most popular countries from around the globe. The BRIC nations remain popular for many ETF providers looking at emerging markets. Although broad products such as iShares MSCI Brazil Index Fund ( EWZ), Market Vectors Russia ETF ( RSX), PowerShares India Portfolio ( PIN) and iShares FTSE/Xinhua China 25 Index Fund ( FXI) have been around for years, fund companies have taken to launching funds which further slice these individual markets. Two of the newest ETFs to hit the scene are the Emerging Global Shares INDXX India Small Cap Fund and the Global X Brazil Consumer ETF.
Seventy-five companies comprise the fund's index and weightings are based on market capitalization. Patni Computer Systems, Indian Bank and Mangalore Refinery represent SCIN's three largest positions, making up 3.4%, 2.5% and 2.0% of the fund respectively.
BRAQ tracks a basket of 28 companies in Brazil's food & beverage, retail, travel & leisure, household goods, and media industries. Top holdings such as Companhia de Bebidas das Americas (ABV), Brazil Foods, Companhia Brasileira De Distribuicao and Natura Cosméticos each represent over 4.5% of the fund's total portfolio. BRAQ and SCIN will certainly not be the last BRIC-focused ETFs to be available to investors. However, it is important to remember that a byproduct of slicing and dicing these nations' markets into smaller chunks is an increase in risk. It is easy to get lost among the more than 1,000 ETF products currently available, and in order to maintain a portfolio of strong, stable domestic and international positions, investors must do their homework before jumping into new products. -- Written by Don Dion in Williamstown, Mass.
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