6 Best ETFs for Investing in BRICS
Even after stepping down from hedge fund Bridgewater Associates, Ray Dalio has remained active in public debate about geopolitics and markets.
In February 2025, he wrote on LinkedIn that “the current world order has broken down,” echoing themes from his book, “Principles for Dealing with the Changing World Order.”
In it, Dalio outlines a long-term “big cycle” in which empires rise through productivity and innovation, peak with financial dominance, then decline under decadent spending, heavy debt burdens and internal conflict over wealth gaps and political polarization.
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Now, Dalio is arguing that the U.S. is in the later stages of that cycle, not yet on the brink of collapse given the dollar’s reserve currency status and a strong military, but facing mounting structural pressures.
Other nations are earlier in the big cycle on the upswing. The most visible example is BRICS, an acronym for Brazil, Russia, India, China and South Africa. This bloc was formed to increase coordination among major emerging economies and provide a counterweight to Western-led institutions.
The group has expanded its influence in recent years, adding new partner countries under BRICS+ and strengthening economic and diplomatic ties aimed at reshaping global trade and finance.
“BRICS economies are de-risking from the dollar to some extent, though a peace deal with Russia and the lifting of sanctions could change that trajectory,” says Henry Greene, senior investment strategist at KraneShares. “BRICS central banks have been responsible for a significant portion of demand for gold.”
For investors, that shifting balance of power, along with the recent outperformance of emerging-market stocks has translated into renewed interest in country-specific exchange-traded funds (ETFs).
However, access is not uniform. Russia, for example, became inaccessible to U.S. investors after its 2022 invasion of Ukraine, which led to sanctions, delistings and the liquidation of several Russia-focused ETFs.
Here are six of the best ETFs for investing in BRICS:
| ETF | Expense ratio |
| iShares MSCI BIC ETF (ticker: BKF) | 0.72% |
| iShares MSCI South Africa ETF (EZA) | 0.59% |
| KraneShares Bosera MSCI China A 50 Connect Index ETF (KBA) | 0.56% |
| KraneShares Hang Seng TECH Index ETF (KTEC) | 0.69% |
| VanEck Digital India ETF (DGIN) | 0.74% |
| VanEck Brazil Small-Cap ETF (BRF) | 0.60% |
iShares MSCI BIC ETF (BKF)
The closest thing to a broad BRICS ETF available to U.S. investors is BKF. The fund tracks the MSCI BIC Index, which focuses on the three largest investable BRICS economies: Brazil, India and China. The portfolio spans 684 holdings, with China representing about 57% of assets, India roughly 31% and Brazil near 11%. The ETF charges a 0.72% expense ratio, making it far pricier than U.S. equity ETFs.
BKF has been around since November 2007 but has remained relatively under the radar, with approximately $94.3 million in assets under management (AUM). Part of that lower popularity stems from liquidity considerations, as emerging-market equities generally trade less heavily than their U.S. counterparts, contributing to a 30-day median bid-ask spread of 0.23% for BKF.
iShares MSCI South Africa ETF (EZA)
Capital markets across much of the African continent are still classified as frontier markets, a step below emerging markets due to lower liquidity, smaller market capitalizations, limited foreign investor access and less developed regulatory frameworks. Frontier markets often have higher volatility and trading frictions compared with more established emerging economies. A notable exception is South Africa.
Investors can access South African equities through EZA, which has been trading since February 2003. EZA tracks the MSCI South Africa 25/50 Index, which currently includes 27 companies. The country’s equity market is heavily concentrated in the materials sector, which accounts for about 44% of the ETF, followed by financials at roughly 31%. EZA charges a 0.59% expense ratio.
KraneShares Bosera MSCI China A 50 Connect Index ETF (KBA)
“KBA consists of 50 large-cap Shanghai and Shenzhen listed stocks (A-shares) available through Stock Connect,” Greene explains. “KBA focuses on the largest, most liquid stocks, which receive the most foreign interest and inflows, and may benefit from increased global investment in China’s onshore market over the long term.” The ETF charges a 0.56% net expense ratio, waived down to 0.79%.
KBA differs from older Chinese equity ETFs that only owned commonly accessed H-shares listed in Hong Kong or American depositary receipts (ADRs). A-shares are restricted to domestic investors, but through the Stock Connect program, institutions such as KraneShares can obtain access and package those holdings into an ETF structure. That allows retail investors to gain more authentic onshore China exposure.
[READ: 7 Best International Stock Funds to Buy for 2026]
KraneShares Hang Seng TECH Index ETF (KTEC)
“KTEC owns 30 of the largest companies in Hong Kong’s rapidly growing technology sector,” Greene explains. “The index provides exposure to innovative companies with strong research and development investment and high revenue growth, across themes such as cloud, e-commerce, fintech and internet.” KTEC is market-capitalization weighted, with an 8% cap on individual stocks to prevent concentration.
Investors can expect exposure to names such as BYD Co. Ltd. (1211.HK), China’s dominant electric vehicle manufacturer with a growing global footprint. Alibaba Group Holding Ltd. (9988.HK) represents the country’s e-commerce powerhouse, increasingly investing in AI and cloud infrastructure. Finally, Tencent Holdings Ltd. (0700.HK) operates one of the world’s largest social media and gaming platforms.
VanEck Digital India ETF (DGIN)
Investors who choose a market-capitalization weighted India ETF, such as one tracking the Nifty 50 Index, will typically see heavy allocations to financials companies. That reflects the structure of India’s largest public firms, which are dominated by banks. For those seeking a more growth-oriented angle, DGIN may be more appropriate. The ETF tracks the MVIS Digital India Index and charges a 0.74% expense ratio.
“DGIN provides targeted access to companies enabling and benefiting from the digitization of India’s economy,” says John Patrick Lee, product manager at VanEck. “The fund spans IT services, telecom infrastructure, fintech and e-commerce, with over half the portfolio in technology firms and meaningful allocations to communications and consumer discretionary platforms.”
VanEck Brazil Small-Cap ETF (BRF)
Similar to India, investors who choose a market-capitalization weighted Brazil ETF will often find the portfolio dominated by financials and materials. That reflects the prominence of large banks and commodity producers in Brazil’s equity market. Investors interested in Brazilian equities but looking to diversify beyond those sectors may prefer BRF, which tracks the MVIS Brazil Small-Cap Index.
“BRF offers exposure to small-capitalization Brazilian companies that are more closely tied to the domestic economy,” Lee says. “While Brazil is often grouped with other BRICS nations as a commodity play, its small-cap segment tells a different story, one driven more by local consumer demand, infrastructure buildout and domestic policy.” BRF charges a 0.6% net expense ratio.
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