S&P Authorizes BRIC Index for New SSgA ETF

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 titled “BRIC Markets: Investment Rationale, Risks and Access Options“.
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.