Philip DoyleiShares BRIC ETFCBQ.TODON'T BUYMar 26, 2010
BRIC ETF. Feels there are better ways to get access to the underlying exposure. Because this one holds ADRs, it is limited in the range of companies it can hold. The mix is very different from market capitalization weighted mix.
(A Top Pick June 19/12. Up .05%.) (BNN showed the date as April 30/12. This was actually a top pick on June 19/12. I corrected the percent from Down 1.86% to Up .05%. - Bill.)
(Top Pick Jun 19/12, Down 9.70%) 40% of world’s population are in those 4 countries and there is a huge middle class. 7-8% over next 12 months. He is pretty content to hold it.
All 4 of the BRIC countries, Brazil, Russia, India and China have had some difficult times. Dismal first-quarter. Valuations have come down on this one. Price has been chopped. Now yielding a 5.3%. Trades at 8X earnings.
If you own, the damage has been done and he would continue to hold. A very good product. Not only emerging markets, but specifically Brazil, Russia, India and China, which are 4 economies that are not going to go away anytime soon and are still growing at 6%, 7% and 8% per year.
Believes the long-term prospects for emerging markets are positive. CBQ has been hurt more than the broader emerging market space. If you like the Claymore thesis then it would be a good time to average down.
BRIC ETF. Brazil, Russia, India and China are the 4 economies that drive the emerging-market world. Brazil is going to be hosting the Olympics in 5 years and China and India have the population growth.
He likes specific stocks. Uses ETFs in TFSAs due to size of account. 10% down recently is to be expected because of the volatility in emerging markets. You need to manage the percentage of your portfolio because of volatility.