Brazil, Russia, India and China are among the biggest and most dynamic emerging market countries. Investors have identified these countries as unique in their potential to sustain high growth rates for the coming years and to shape the global economy. The Dow Jones BRIC 50 Index is designed to serve as underlying for investment products such as mutual funds, exchange-traded funds (ETFs) and other investable products.
“With the Dow Jones BRIC 50 Index, we are now able to provide investors for the first time with a blue-chip index for the most sought after emerging markets,” said Lars Hamich, managing director of STOXX Ltd., the joint venture which is responsible for Dow Jones Indexes' business development in Europe, Asia and the Middle East. “The Dow Jones BRIC 50 Index is a relatively small index focusing on the most liquid and largest companies in Brazil, Russia, India and China. The new index provides investors with an attractive tool to gain easy access to these fast-growing emerging economies.”
The number of components in the Dow Jones BRIC 50 Index is fixed at 15 each for Brazil, India and China and five components for Russia to reflect the size of each market in the index. Additionally, each component’s weight is capped at 10% of the index’s total free-float market capitalization to prevent overweighting of any one component stock. The Dow Jones BRIC 50 Index is weighted by free-float market capitalization and will be reviewed annually in September. Historical index values are available back to December 31, 2002. It is calculated in USD and Euro.
The components of the Dow Jones BRIC 50 Index are selected based on size and liquidity from the Dow Jones Total Market Indexes for Brazil, Russia and India and the Dow Jones China Offshore 50 Index. In the case that a company has multiple listings, the less liquid ones are excluded. China “B” shares, which are traded in mainland China, and “red chip” shares of Hong Kong-based companies are also excluded.
Further information about the Dow Jones BRIC 50 Index is available at www.djindexes.com.
