Skip to main content

Examining BRIC and "psuedo" ETFs

An interesting article, written by Michael Dawson and entitled, "Building a Better BRIC-Trap", examines the BRIC (Brazil, Russia, India, China) investment theme and offers advice on how to construct your own BRIC-focused investment portfolios.

Here's the meat of Dawson's approach explained:

Individual investors no longer have to wait on Wall Street’s products. Low cost brokers and basket trading have made it financially feasible and practical to create your own “pseudo-ETF.” Read my article on low cost basket trading for more details.

Currently, I am using two pseudo-ETFs to invest in the BRIC theme. The first is composed of stocks that provide raw materials and supplies necessary for the industrialization of the BRIC economies. The second is simply an equal-weighted basket of EWZ, TRF, IFN and FXI. I prefer this approach versus the Claymore, since I can control the allocations. So, if you only want broad exposure use the Wall Street products or a variation similar to mine.

That being said, I am in the process of reconstructing the second method. I believe in the long run more upside will be realized by addressing specific problems facing the BRIC countries as opposed to the broad-brush approach. So, the second ETF will be composed of stocks that address two major problems facing the BRICs – pollution management and logistics/transportation. I will address logistics and transportation in a subsequent article.

See the article for more on Dawson's approach and his picks for an infrastructure/logistics focused BRIC "ETF".

Popular posts from this blog

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL!  Please bookmark our new web address at Financetrendsletter.com Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner .   Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead! As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter . You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter).  Stay up to date with our real-time insights and updates on Twitter .

Moneyball: How the Red Sox Win Championships

Welcome, readers . T o get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter .   The Boston Red Sox won their fourth World Series title of t he 21st century this we ek. Having won their first Se ries in 86 years back in 200 4, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it? Quick background: in late 2002, team own er and hedge fund manager, John W. Henry (with his partners ) bought the Boston Red Sox and its historic Fenway Park for a reported sum of $ 695 million. Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship. This brings us to one of my fav orite scenes from the 2011 film , Moneyball , in which John W. Henry (played by Ar liss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pi

Jukebox

Tonight's jukebox is a blast back to the mid-1980's with a live in studio performance by New Order for BBC Radio 1. There are some very noticeable flubs in their performance (I think Bernard may have been feeling a little "rushed"), but the songs are amazing and it's like being an eyewitness to a studio rehearsal. An excellent video snapshot of one of the most inventive modern pop groups doing their thing. Enjoy, and thanks Adz! New Order, live 1984: "Sooner Than You Think" , "Age of Consent" , "Blue Monday" , "In a Lonely Place" , "Temptation" .