Emerging Market ETFs: More Than BRIC

As the U.S. and most developed countries struggle to get out of the global recession, faster-growing emerging markets may be the answer to many questions.  When speaking of emerging international markets most automatically think of Brazil, Russia, India and China, the BRIC countries, but there are other opportunities to consider.

One such opportunity lies in Africa.  South Africa is known for its mining and production of precious metals and as long as the dollar remains weak and investors worry about inflation, precious metals will remain a hot commodity.  To further boost its appeal, South Africa’s government has implemented a spending restraint which has enabled its currency to remain relatively strong and its debt ratios favorable.  The International Monetary Fund (IMF) pegs South Africa’s debt-to-GDP ratio somewhere in the 35% to 40% range.  The easiest way to gain exposure to the nation is through the iShares MSCI South Africa Index ETF (EZA). 

CIVETS: The Next Gateway To Growth

After the exceptional economic growth and prosperity witnessed by emerging markets, like China, India and Brazil, the CIVETS, Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa are expected to be the growth leaders in the next decade. 

As a whole, the CIVETS have appeal due to their large, young and growing populations, diversified economies, decent financial systems and political stability, when compared to their counterparties.  Additionally, the Economist states that all six nations are relatively unhampered by high inflation, trade imbalances or sovereign debt woes.