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Chart

 

Shorter Dave Wilson: Emerging markets have stunk the joint up.

The longer version looks at some of the new ETFs that seek to shore up performance of emerging-market stocks by dropping the BRIC part of EM:

-The four-country BRIC indicator has slipped 15 percent, with Brazilian stocks leading the decline.

-Beyond BRICs index compiled by Indxx LLC has fallen 13 percent for the year. It tracks the decline in the MSCI Emerging Markets Index, (BRICs + 17 other countries).

-Both indexes have dropped about as much as the MSCI BRI Index, also shown in the chart. The four-country indicator has slipped 15 percent, with Brazilian stocks leading the decline.

Note that State Street filed to start an exchange-traded fund known as the SPDR MSCI Beyond BRIC ETF — it would be emerging markets excluding Brazil, Russia, India and China.

 

 

Source:
Emerging-Stock Drop Thwarts Going Beyond BRICs
David Wilson
Bloomberg,August 30, 2013

 

Category: Investing, Markets, Valuation

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3 Responses to “Beyond BRICs”

  1. willid3 says:

    what ever happened to that disconnect from the US that was supposed to happen? or that the BRICS were suppose to replace the US?

  2. RW says:

    I suspect Beyond BRICs would provide about the same performance as iShares MSCI Frontier 100 Index (FM) but time will tell.

    Bigger picture, I’d feel more confident in the diversification value of products like this if capital flows were a bit more restricted, but, as it stands there, still doesn’t seem to be much preventing all correlations from going to one when the hot money heads for the exits.

  3. Joe says:

    Can I get an ETF that starts out global and every quarter excludes sectors that underperform and still have a globally diversified ETF when they’re done?