S&P Authorizes BRIC Index for New SSgA ETF

June 22, 2007 (PLANSPONSOR.com) - Standard & Poor's has licensed State Street Global Advisors (SSgA) to create and launch an exchange-traded fund (ETF) based upon its S&P BRIC 40 Index.

The SSgA ETF commenced trading Friday on the American Stock Exchange (see State Street Offers BRIC ETF).

Standard & Poor’s also issued a white paper on the economic and investing rationales for considering investment allocations to Brazil, Russia, India and China. The report, ” BRIC Markets: Investment Rationale, Risks and Access Options ,” can be found  HERE .


Index Designs

According to a press release, the S&P BRIC 40 Index is designed to offer tradable exposure to leading stocks from four emerging markets: Brazil, Russia, India and China (BRIC). The index, launched in May 2006, uses what S&P describes as “an innovative design to ensure replicability and diversification.”   

All stocks in the S&P BRIC 40 index are constituents of the S&P/IFC Investable (S&P/IFCI) index series, a family of emerging market indices that measures the return of stocks that are legally and practically available for foreign investment.