IBK - iShares MSCI BRIC Index Fund

[bugmenot]

Cant find any thread for this ETF so I'm starting one.

The internet is bubbling over with talk of BRIC market growth in short, medium and long term (!!!).

Next time this guy takes another dip I'm going to buy in.

Interested to hear everyones thought's on this ETF, the stocks included and whether it is currently over/under bought etc (I think it is currently over bought).

 

[gfresh]

Re: IBK - BRIC markets ETF

Here is my take from a technical perspective anyhow..

Double bottom at $42.00 is very bullish.. However bouncing off resistance at $48 for second time bearish. Recent higher volume, and some consolidation may indicate buyers are taking supply on expectation of breaking $48.

Today's Harami cross indicates indecision on selling, and may indicate a short-term trend change.

MACD rising from below the zero line to above which is fairly bullish.

I guess most would wait on a break of $48 before entering. Looks pretty good setup to me. I don't believe it's overbought, not after coming off in June.

 

[doctorj]

Re: IBK - BRIC markets ETF

I fundamentally don't understand the basis for grouping these markets together in a single fund, or as a base for analysis. They're in different parts of the world, their economies are fundamentally different, as are their risks. Sure, it makes for good copy and is easy for the LCD to understand, but is it really sound - emerging market is a very big bucket.

 

[bugmenot]

Re: IBK - BRIC markets ETF

Here is my take from a technical perspective anyhow..

Double bottom at $42.00 is very bullish.. However bouncing off resistance at $48 for second time bearish. Recent higher volume, and some consolidation may indicate buyers are taking supply on expectation of breaking $48.

Today's Harami cross indicates indecision on selling, and may indicate a short-term trend change.

MACD rising from below the zero line to above which is fairly bullish.

I guess most would wait on a break of $48 before entering. Looks pretty good setup to me. I don't believe it's overbought, not after coming off in June.

Thanks for the great technical point of view there gfresh! I know the basics of technical analysis but its always nice to have someone more experienced confirm your ideas. I was about to pull the trigger on this one today but decided to wait and see what happens next week. Bollinger bands seem to be telling me to buy, but as you said it may be better to wait for the upper resistance to break.

DoctorJ has some good points - what are the boundaries of technical analysis? This stock increases and decreases in value just like any other on the ASX, except there are no real profits to base a P/E on. The fact that the companies are distributed around the world doesn't bother me, its more the fact that there are hundreds (?) in the basket each with independent forces acting upon them... Food for thought.

 

[bugmenot]

Re: IBK - BRIC markets ETF

Found some nice commentary here:
http://www.moneyandmarkets.com/accessing-the-frontier-markets-with-etfs-3-34983

Does anyone know if there are "Frontier Market" ETF's available on the ASX? I will have to do some research into this - obviously greater risk exposure than IBK however.


Accessing the Frontier Markets with ETFs

by Ron Rowland 08-06-09
Ron Rowland

As a Money and Markets reader, you probably know an awful lot about “emerging markets.” They’re the countries that aren’t quite as modernized as the U.S. but are developing fast: China, Brazil, India, Russia, etc.

But there’s another tier further down the pecking order: The “frontier markets.” These countries have developed their capital markets in just the last few years. They’re risky, but the growth potential is huge!
The frontier can be a dangerous place.
The frontier can be a dangerous place.

Until very recently the frontier markets were extremely difficult for Americans to trade. You can’t just log into your online brokerage account and buy a stock in Namibia. Nor should you … the risks are too great.

But now, thanks to exchange-traded funds (ETFs), you can easily buy a diversified portfolio of frontier market stocks in one simple package. More on that in a moment. First …

Where, In This Fast-Shrinking World,
Is There Any Frontier Left To Tackle?

Today’s technology means that events in the remotest parts of the world seem only as far away as your satellite dish. So you might think that all of the frontiers have disappeared.

Actually there are several dozen frontier markets. And all of the index providers have their own specific criteria of what kind of countries qualify, with two broad principles in common …

First, frontier markets need to be investable, with a functioning local stock market that accepts foreign investment. Countries that bar foreigners can’t be part of the club.

Second, frontier markets must be smaller and less liquid than the more-advanced emerging markets. This is what gives them such tremendous potential.

The frontier markets are scattered around the world. For instance, you’ll find them in …

Eastern Europe: Bulgaria, Croatia, Estonia, Romania, Ukraine

Latin America: Chile, Jamaica, Peru, Trinidad and Tobago

Africa: Botswana, Ghana, Kenya, Mauritius, Nigeria

Middle East: Bahrain, Jordan, Kazakhstan, Lebanon, Oman, Qatar

Asia: Bangladesh, Cambodia, Sri Lanka, Vietnam

Those are just a few examples. Many are not what you would consider to be tourist spots. They are places of incredible contrast: Stark poverty adjacent to gleaming cities of wealth. But they’re all moving quickly to join the globalized economy.

How You Can Invest
In Frontier Markets …

As I mentioned earlier, I think most investors should avoid individual stocks from frontier markets. The risks are just too great unless you’re an expert who is on top of the local situation.

As far as I’m concerned, it’s much safer to go with an ETF that gives you a broad portfolio of stocks from a variety of frontier markets. Here are six ETFs you might want to consider:

* Claymore/BNY Mellon Frontier Markets (FRN)

* Market Vectors Africa ETF (AFK)

* Market Vectors Gulf States (MES)

* PowerShares MENA Frontier Countries (PMNA)

* SPDR S&P Emerging Middle East & Africa (GAF)

* WisdomTree Middle East Dividend (GULF)

All of these funds are fairly new, so don’t expect to see a long-term track record.
The Middle East is filled with frontier markets.
The Middle East is filled with frontier markets.

Also take note that most of the ETFs on this list have a regional focus. The last four specialize in the Middle East, North Africa, or both. This is a reflection of the energy capital that has flowed into those areas over the last few years.

Of these six ETFs, only the FRN has exposure to Asia, the Americas and Europe. Yet the FRN isn’t exactly “balanced.” Just four countries — Chile, Poland, Egypt and Colombia — account for three-quarters of the portfolio. Additionally, these larger positions are classified as “emerging” instead of “frontier” by many other index providers, such as Morgan Stanley Capital International (MSCI).

Keep in mind, as well, that all of these ETFs track indexes of frontier markets. They aren’t actively managed.

Many of the frontier markets are still difficult for U.S. investors to access, but that should change as additional ETFs are introduced. Another thing to remember is that frontier markets are all about risk.

Nevertheless, companies in these places are desperate for investors to help them expand. So if you’re willing to take on the risk of being a pioneer, there’s a chance you’ll be handsomely rewarded in the long run.

Best wishes,

Ron

 

[aarbee]

Re: IBK - BRIC markets ETF

A question for those who have invested in IBK as to how's the liquidity in this ETF. Just looking at the chart of IBK, there seem to be lots of days where the price has gapped significantly.

Any comments welcome.

Cheers

 

[bugmenot]

Re: IBK - BRIC markets ETF

Yet another new geographic source of growth with a fancy acronym so the Americans can remember where on the map they are earning their squillions... MENA!

“I'm talking about the Middle East and North Africa, or MENA,” says Chris Mayer.

“In one of my presentations at Vancouver, I focused on the growth in these economies because it touches on nearly everything I’ve been telling my Capital & Crisis readers lately -- water and food scarcity issues, infrastructure needs, energy and the growth in non-U.S. trade.

“MENA is one of the fastest-growing regions in the world. Over the last 50 years, MENA's population is up more than fourfold. And the population is still young, with the majority of the population under 25 years old. Over the next 30 years, MENA's population will grow more than 60%, to nearly 700 million people. Trade there is expanding just as quickly.

“The most interesting thing about this growth is that it is happening in a part of the world where it is most difficult to grow food. Water is scarce. MENA consumes far more water than it gets via rainfall. In some places, the disparity is dramatic. In Kuwait, for instance, annual water consumption is 22 times annual rainfall. No wonder the whole area is a net importer of food.

“The Middle East is actually the world's largest regional importer of food. Egypt, for instance, actually imports more wheat than China. The GCC countries -- or gulf coast countries -- will import 60% of their food by 2010. And it's likely to get worse. Saudi Arabia aims to phase out wheat production by 2016 to conserve water.

“The key takeaway from all of this is to recognize this other, non-BRIC, growth engine and the needs and opportunities it creates. Once again, we'll see enormous investment in food and water resources to feed and slake the thirst of all these people. And we'll need all of the infrastructure and burn all of the hydrocarbons that come with that growth.â

 

[bugmenot]

Re: IBK - BRIC markets ETF

IBK has now convincingly broken through upper resistance at 48, what are peoples thoughts on the upside of this ETF for the next 3-5 years?

I wonder how the death spiral of the US dollar will effect this one...? I have been waiting to buy in to this one for many months and I think now could be the time.

 

[System]

On July 8th, 2013, iShares MSCI BRIC changed its name to iShares MSCI BRIC Index Fund.

 

[Dona Ferentes]

tried looking for this .... not on ASX any more. Maybe it morphed, or was wound up for lack of interest?

It is a bit of an early 2000's story anyhow. Definitely, one quarter of the offer would be 'uninvestible', in the current circumstances.

Which Australian funds have the biggest exposure to Russia?

Russian exposure is not widespread among active managers. Only 13 strategies in our global equities database hold greater than 5% portfolio exposure.

www.morningstar.com.au

 

[Belli]

tried looking for this .... not on ASX any more. Maybe it morphed, or was wound up for lack of interest?

It is a bit of an early 2000's story anyhow. Definitely, one quarter of the offer would be 'uninvestible', in the current circumstances.

Which Australian funds have the biggest exposure to Russia?

Russian exposure is not widespread among active managers. Only 13 strategies in our global equities database hold greater than 5% portfolio exposure.

www.morningstar.com.au

It was delisted in 2018.

I believe it is still available on the US market.

Found the reference

BlackRock simplifies iShares for Aussie investors

BlackRock’s cross-listed iShares would be restructured as new Australian-domiciled iShares exchange-traded funds.

www.moneymanagement.com.au