BRIC Alternative

BRIC Alternative Funds or ETFs invest the majority of their assets in... BRIC Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in the BRIC countries (Brazil, Russia, India, and China). Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds, money market funds, or cash. Common alternative assets include hedge funds, real estate, private equity, venture capital, precious metals and other commodities, infrastructure, cryptocurrencies, and collectibles (such as art). A BICK Alternative Fund or ETF may be actively or passively managed, and may, depending on its mandate, invest in one or more alternative asset classes. Alternative assets have seen tremendous growth in the last few decades. They have received significant investor inflows due to the perception that they can offer better risk-adjusted returns than traditional assets. At times, alternative assets may outperform traditional assets, and they may also exhibit returns that don’t move in lockstep with publicly traded equities and bonds. This can reduce the overall volatility of a portfolio. The BRIC countries comprise some of the world’s largest buyers of gold, a key alternative asset. China and India are the top two purchasers of gold annually. Meanwhile, private equity is a growing asset class in Brazil, with deals topping US$11 billion from 2019 to 2022. BRIC Alternative Funds or ETFs may be appropriate depending on the alternative in question and an investor’s risk tolerance. It’s important to note that alternatives may not perform as well as they did in the past, and risk aversion in public markets can spread over into alternative assets. It’s also important to know that most Western countries imposed significant sanctions on Russian investments after the invasion of Ukraine. Until those sanctions are lifted, BRIC Alternative Funds and ETFs can’t invest in Russia and probably cannot sell any assets there. This latter fact presents a risk for investors. Last Updated: 12/27/2024 View more View less

BRIC Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in the BRIC countries (Brazil, Russia, India, and China). Alternative assets are generally defined as any asset other... BRIC Alternative Funds or ETFs invest the majority of their assets in so-called alternative assets in the BRIC countries (Brazil, Russia, India, and China). Alternative assets are generally defined as any asset other than publicly traded stocks, bonds, mutual funds, money market funds, or cash. Common alternative assets include hedge funds, real estate, private equity, venture capital, precious metals and other commodities, infrastructure, cryptocurrencies, and collectibles (such as art). A BICK Alternative Fund or ETF may be actively or passively managed, and may, depending on its mandate, invest in one or more alternative asset classes. Alternative assets have seen tremendous growth in the last few decades. They have received significant investor inflows due to the perception that they can offer better risk-adjusted returns than traditional assets. At times, alternative assets may outperform traditional assets, and they may also exhibit returns that don’t move in lockstep with publicly traded equities and bonds. This can reduce the overall volatility of a portfolio. The BRIC countries comprise some of the world’s largest buyers of gold, a key alternative asset. China and India are the top two purchasers of gold annually. Meanwhile, private equity is a growing asset class in Brazil, with deals topping US$11 billion from 2019 to 2022. BRIC Alternative Funds or ETFs may be appropriate depending on the alternative in question and an investor’s risk tolerance. It’s important to note that alternatives may not perform as well as they did in the past, and risk aversion in public markets can spread over into alternative assets. It’s also important to know that most Western countries imposed significant sanctions on Russian investments after the invasion of Ukraine. Until those sanctions are lifted, BRIC Alternative Funds and ETFs can’t invest in Russia and probably cannot sell any assets there. This latter fact presents a risk for investors. Last Updated: 12/27/2024 View more View less