Dow Jones BRIC 50 Index

What Is the Dow Jones BRIC 50 Index?

The Dow Jones BRIC 50 Index is a market capitalization-weighted stock index containing 50 of the most liquid and largest companies operating in Brazil, Russia, India, and China (BRIC nations). The index involves the Dow Jones Global Indexes as its stock universe for the four nations.

The BRIC index has 879 constituents, and the index covers around 85% of the market capitalization in each country. Fifteen positions are targeted for each country Brazil, Russia, and China, while Russia's representation is targeted for five positions.

Figuring out the Dow Jones BRIC 50 Index

The index's selection depends on a positioning system that takes a gander at free-float market capitalization and average daily volume. The main 10 positioned stocks in each subindex are chosen alongside a modified selection of five additional between the rankings of 11 and 20. (These numbers are customized for Russia.)

The index is reconstituted every year, and weightings are adjusted quarterly.

BRIC investing is a popular strategy, as these nations address large, creating economies that are progressively engaged with the global economy. China's representation is sought exclusively in the offshore market, where H-shares and American depositary receipts (ADRs) are accessible on various stock exchanges.

Dow Jones BRIC 50 Index Data

The BRIC 50 index contains 50 constituent stocks, weighted around one-third to the technology sector, 20% to financials, and 14% each to oil and gas and consumer services. In terms of the four BRIC countries' representation, 15 of the 50 holdings (57.2% of the total market cap) have a place with Chinese companies, 14 to India (22.5% of the market cap); 16 to Brazil (10.8%); and 5 to Russia (9.5%).

As of the finish of 2021, the best 10 holdings of the Index (which make up 55.5% of the market cap) were as per the following.

The subindexes are the Dow Jones BRIC Brazil 15 Index, the Dow Jones BRIC China 15 Index, the Dow Jones BRIC China 15 Capped Index, the Dow Jones BRIC India 15 Index, the Dow Jones BRIC India 15 Capped Index, and the Dow Jones BRIC Russia 5 Index.

Coming up next is a breakdown of these subindexes:

• The Dow Jones BRIC Brazil 15 Index addresses 15 of Brazil's largest and most liquid companies traded on the Bovespa stock exchange.
• The Dow Jones BRIC China 15 Index addresses 15 of China's largest and most liquid companies whose principal operations are in central area China however trade on the exchanges of Hong Kong and the United States.
• The Dow Jones BRIC China 15 Capped Index is a capped form of the Dow Jones BRIC China 15 Index where organization weights are capped at 19%.
• The Dow Jones BRIC India 15 Index addresses 15 of India's largest and most liquid companies traded on the Bombay Stock Exchange.
• The Dow Jones BRIC India 15 Capped Index is a capped rendition of the Dow Jones BRIC India 15 Index where organization weights are capped at 19%.
• The Dow Jones BRIC Russia 5 Index addresses five of Russia's largest and most liquid companies traded on the MICEX stock exchange.

Highlights

• BRIC represents the emerging markets of Brazil, Russia, India, and China.
• No single stock can make up over 10% of the BRIC 50 Index.
• Selection for the index depends on a positioning system that takes a gander at free-float market capitalization and average daily volume.
• The Dow Jones BRIC 50 Index is a market capitalization-weighted stock index made out of 50 of the most liquid and largest companies operating in the BRIC nations.
• BRIC investing is a popular strategy as these nations address large, creating economies that are turning out to be progressively engaged with the global economy.

FAQ

How Can I Invest in a BRIC Index?

In the U.S., there is right now just the iShares MSCI BRIC ETF (BKF), an exchange traded fund that tracks the MSCI BRIC Index.

Is Investing in the Bric 50 Index Risky?

Since BRIC countries are arranged as emerging markets economies, they in all actuality do will generally be less secure with additional unpredictable stock markets than developed economies.

What Other BRIC Indexes Are There?

Notwithstanding the Dow Jones BRIC 50, FTSE Russell likewise deals with a BRIC 50 Index utilizing a comparative methodology. Dow Jones likewise offers a BRIC 40 index that incorporates the 40 leading BRIC stocks. The MSCI BRIC Index is another, more extensive BRIC index, including 920 holdings.