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5-Star ETFs Poised to Pop: Guggenheim BRIC

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Guggenheim BRIC ETF (NYSE: EEB  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Guggenheim BRIC and see what CAPS investors are saying about the ETF right now.

Guggenheim BRIC facts

Inception September 2006
Total Assets $442 million
Investment Approach Seeks results that correspond to the BNY Mellon BRIC Select ADR Index, which is a universe of listed depositary receipts of companies from Brazil, Russia, India, and China currently trading on U.S. exchanges.
Expense Ratio 0.60%
1-Year / 3-Year / 5-Year Annual Returns (19.7%) / 17.6% / 5.2%
Top Holdings With High CAPS Rating (4 or 5 Stars) and Portfolio Weight Vale (NYSE: VALE  ) (10.5%)
China Mobile (NYSE: CHL  ) (7.5%)
Petrobras (NYSE: PBR  ) (7.5%)
Alternatives iShares MSCI BRIC Index Fund (NYSE: BKF  )
SPDR S&P BRIC 40 (NYSE: BIK  )

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 98% of the 323 members who have rated Guggenheim BRIC believe the ETF will outperform the S&P 500 going forward. These bulls include KeithGrable and FAOFool.

Having gotten on board a couple of years ago, KeithGrable nicely broke down the BRIC bull case: "Brazil and Russia have natural resources that will profit from the recovery. India and China have large reserves and a large population to provide a basis for growth."

Guggenheim BRIC, in particular, sports a portfolio whose stocks average brisk cash-flow growth of 26%. That's higher than that of other BRIC ETFs like SPDR S&P BRIC 40 (22%) and iShares MSCI BRIC (-9%).

CAPS member FAOFool elaborates on the bull case:

As the US economy recovers, these economies will enjoy greater growth. Additionally, these governments support domestic companies ... especially the larger ones. As a result, when the global economy recovers, more investment money will go into these countries, and, when combined with domestic growth (supported by government), they will do extremely well. I'm in!

What do you think about Guggenheim BRIC, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of China Mobile. Motley Fool newsletter services have recommended buying shares of China Mobile and Petrobras. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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