Next generation of emerging economies

We know about the BRIC countries. Now a new crop of nations could become the next investing hot spots.

By Kim Peterson Oct 18, 2010 4:32PM
global economy © Comstock / SuperStockA civet is a cat-like animal that produces musk used in perfumes. But to investors, CIVETS may be the new BRIC.

BRIC, the countries of Brazil, Russia, India and China, have long been recognized as an investment goldmine. Economists at Goldman Sachs (GS) have suggested that BRIC could become huge forces in the world economy by 2050.

Now some are suggesting investors update their international focus to CIVETS: Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. The bank HSBC reportedly first coined the term, with the chief executive saying he liked the countries for the following reasons:
  • They have large, young and growing populations.
  • They have diverse and dynamic economies.
  • They are politically stable.
That's not to say these companies are perfect, in fact many of them have a history of corruption and economic instability. But they seem to be moving into place to become what Investopedia calls a second generation of emerging economies.

So how can you make a sensible investment in an unproven idea that's starting to gain traction? Investopedia recommends going the ETF route for each country:

Colombia: Global X FTSE Colombia 20 (GXG)
Indonesia: Market Vectors Indonesia (IDX) or iShares Indonesia (EIDO)
Vietnam: Market Vectors Vietnam (VNM)
Egypt: Market Vectors Egypt (EGPT)
Turkey: iShares Turkey (TUR)
South Africa: iShares South Africa (EZA)


0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
280
280 rated 2
473
473 rated 3
639
639 rated 4
637
637 rated 5
662
662 rated 6
640
640 rated 7
498
498 rated 8
287
287 rated 9
121
121 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPCONOCOPHILLIPS9
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
KOGKODIAK OIL & GAS Corp9
CVXCHEVRON CORPORATION8
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.