In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four".
Jim O’Neill of Goldman Sachs, who coined the acronym BRIC to denote the big emerging economies of Brazil, Russia, India and China, has coined a new phrase MIST, a second tier of biggish rising stars, alongside Mexico, Indonesia, South Korea and Turkey.
The other three currencies—the Brazilian real, Indian rupee and Russian ruble—have all fallen sharply in the past year, with the real and rupee both down more than 20 percent.
The Bloomberg story I’m referring to not only illustrated just how rough it’s been in the past 12 months for the currencies of the four BRIC countries—Brazil, Russia, India and China—it also painted a pretty bleak outlook for them moving forward.
The uncertainty recently swirling in global financial markets has surely had its origins in the job reports from the U.S. and debt figures of Europe, but the stocks of China, Brazil and other developing markets are what have taken the biggest hit as a result.
The Index consists of stocks traded primarily on the Sao Paolo Stock Exchange, Russian Trading System Stock Exchange, Moscow Interbank Currency Exchange, National Stock Exchange of India and the Stock Exchange of Hong Kong.
The Fund will seek to track the performance of the Index by investing at least 80% of its assets in component securities and in depositary receipts representing such securities. The Fund may invest up to 20% of its assets in certain futures, options, swap contracts, cash and cash equivalents (including money market funds), and other exchange-traded funds, including other iShares funds. The Fund’s investment advisor is Barclays Global Fund Advisors. The index provider of the Fund is Morgan Stanley Capital International
iShares MSCI BRIC Index Fund is an exchange traded fund seeking investment results that correspond to the performance of the MSCI BRIC Index.
Featuring large growing populations, rising domestic wealth and vast commodity resources, the BRICs have managed to capture the emerging market spotlight and rise to the top. Overall, the four nations are poised to be the next leaders on the world stage. So far, the BRIC bloc has lived up to that promise. That is until recently, when potential cracks began to form.
When Goldman Sachs (NYSE:GS) economist Jim O'Neil first dubbed the four nations of Brazil, Russia, India and China the BRICs back in 2001, he made one of the gutsiest long-term global macro-economic calls - that these nations would be the biggest drivers for future global growth. O'Neil's prediction has, for the most part, come true. The MSCI BRIC index has risen by more than eight times what the S&P 500 index returned during the past decade, and the BRICs' combined gross domestic product soared to $13.3 trillion last year. However, while the group's previous prowess is well known, lately it has begun to struggle. For long-term investors, now could be the best time to strike on BRIC.
The MSCI BRIC Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the following four emerging market country indices: Brazil, Russia, India and China.