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Another Beyond BRICs Index Comes to Town


MSCI (MSCI), provider of indices for some of the largest developed and emerging markets ETFs, introduced its entry to the growing “Beyond BRICs” theme with the MSCI Beyond BRIC Index.

The MSCI Beyond BRIC Index “is designed to provide a broad measure of the performance of emerging market equities outside of the BRIC markets – Brazil, Russia, India and China. In addition, to provide greater country diversification, the weight of each single country is capped on a quarterly basis at 15% ,” according to the index provider. 

As ETF sponsors have looked for new ways to slice and dice the emerging markets universe, focus has grown on ideas and products that are not heavily exposed to Brazil, Russia, India and China. Emerging Global Advisors introduced the EGShares Beyond BRICs ETF (BBRC) last year. South Africa, Mexico, Malaysia Thailand and Indonesia combine for about 80% of that ETF.

Late last month, it was reported that BBRC will drop the Indxx Beyond BRICs Index in favor of the FTSE Beyond BRICs Index. The FTSE Beyond BRICs Index will allow BBRC to expand its lineup to as many as 75 stocks from 50 along with allowing for the inclusion of frontier markets . [Guggenheim BRIC ETF to Get More BRIC Feel]

It was also reported in late August that State Street’s (STT) State Street Global Advisors unit filed plans with the Securities and Exchange Commission to possibly introduce the the SPDR MSCI Beyond BRIC ETF. [State Street Could List Beyond BRICs ETF]

South Africa, Taiwan and South Korea loom large in the MSCI Beyond BRIC Index, combining for about 46% of its weight. Mexico, Malaysia and Indonesia receive far larger weights than they do in the MSCI Emerging Markets Index, combining for 28% of the Beyond BRIC Index.

Sector weights for the MSCI Beyond BRIC Index include almost 26.1% to financial services, nearly 14.3% to technology, 11.5% to materials, 11% to consumer staples and 9.4% to consumer discretionary. The index is a free float-adjusted market cap-weighted index.

EGShares Beyond BRICs ETF

ETF Trends editorial team contributed to this post.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.