Can BRIC Small-Cap ETFs Do It Again In 2013?

Page 1 of 3

Despite a slack performance by the iShares MSCI Brazil Index (NYSEARCA:EWZ), which is off almost 4.5 percent for the year, the four major country-specific ETFs tracking the BRIC nations have performed well as a group.

The other three ETFs are the iShares FTSE/Xinhua China 25 Index (NYSEARCA:FXI), the WisdomTree India Earnings Fund (NYSEARCA:EPI) and the Market Vector Russia ETF Trust (NYSEARCA:RSX). Throw in EWZ and the average return for that quartet of BRIC ETFs is 9.1 percent. That is solid, but not aw-inspiring, particularly when the far less volatile SPDR S&P 500 (NYSEARCA:SPY) is up 13.4 percent.

iShares Dow Jones US Home Const. (ETF) (NYSEARCA:ITB)

The 2012 picture for BRIC ETFs is a bit prettier at the small-cap level. Using the Market Vectors Brazil Small Cap (NYSEARCA:BRF), the Market Vectors India Small Cap Index (NYSEARCA:SCIF), the Claymore/AlphaShares China Small Cap (NYSEARCA:HAO) and the Market Vectors ETF Trust (NYSEARCA:RSXJ) would have generated an average return of nearly 11.4 percent across the four funds and that includes a loss of almost 11.8 percent for the Market Vectors Russia Small-Cap ETF.

If investors swapped out of BRF in favor of the iShares MSCI Brazil Small Cap Index (NYSEARCA:EWZS) and out of the SCIF in favor of the EGA Emerging Global Shares Trust (NYSEARCA:SCIN), the average return for a quartet of BRIC small-cap ETFs jumps to 14.3 percent. So split the difference between the two combinations – BRF, SCIF, HAO and RSJX and EWZS, HAO, RSXJ and SCIN and the average return between the two groups is about 13 percent.

Either way, investors that wanted exposure to each BRIC nation on an individual basis would have done better with small-caps ETFs than with large-cap equivalents. With just a few trading days left in 2012, the question is whether BRIC small-caps will continue outperforming in 2013. The answer should be addressed at the country level to start.

Page 1 of 3
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!