BRICS ETFs let investors buy into the stock and bond markets of Brazil, Russia, India, China, South Africa, and five newer members (Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE) through a single fund traded on U.S. exchanges. They offer growth potential but come with real volatility.
At a Glance
- BRICS now spans ten countries covering roughly 3.5 billion people and about 42% of global crude oil output.
- Russia was dropped from most BRICS indexes and delisted from U.S. exchanges after its 2022 invasion of Ukraine.
- China carries the largest GDP among BRICS nations, near $17.88 trillion in 2022.
- Expense ratios on major BRICS focused funds range from about 0.19% to 0.87%.
- Financial planners generally suggest capping emerging market exposure, including BRICS, at 5% to 10% of a portfolio.
Where the BRICS Idea Came From
Jim O'Neill, an economist who chaired Goldman Sachs Asset Management at the time, coined the term BRIC in a 2001 research paper called