The 3 best ETFs to take advantage of the rise of the BRICS block

Investors were looking for ETFs to buy after the five nations that make up the BRICS recently met with six other emerging countries to invite them to join their economic club.

Brazil, Russia, India, China, and South Africa invited Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates to join them in an economic and geopolitical union. These six countries were chosen from among 22 candidates.

Known as the BRICS-11, these nations represent a significant portion of the global gross domestic product and 47% of the world population. This is a major issue.

It is likely that a new ETF will be launched to represent the leading companies of the BRICS-11. In the meantime, here are three ETFs to consider that allow investors to invest in some of these companies.

To be included, the three ETFs must have a minimum net assets of $250 million, a median market capitalization of $1 billion, and generate a dividend yield of at least 1.5%.

Attention, here come the BRICS-11.

iShares MSCI Emerging Markets Ex China ETF ( EMXC )

The iShares MSCI Emerging Markets Ex China ETF ( NASDAQ: EMXC ) is the largest of the three ETFs with net assets of $1.05 billion.

Launched in July 2017, this passive ETF tracks the performance of the MSCI Emerging Markets Ex China index, a collection of mid- and large-cap stocks from emerging countries, excluding China.

Therefore, the top three sectors by weighting are India (21.50%, Taiwan )21.04%, and South Korea (17.95%. Among the current BRICS countries, we find India, Brazil, and South Africa. If we include the BRICS-11, Saudi Arabia and the United Arab Emirates are also represented. Regarding sector weights, the three largest are technology )26.79%, finance (24.71%, and materials )10.12%.

The top 10 holdings account for 23.58% of EMXC’s net assets. Several are listed on U.S. exchanges. It has a total of 705 holdings.

Its average market capitalization is $73.73 billion, and its dividend yield is 2.3%. An investment of $10,000 at its inception in 2017 would be worth $11,779 as of September 1, 2025.

WisdomTree Emerging Markets State-Owned Enterprises Fund ( XSOE )

The WisdomTree Emerging Markets State-Owned Enterprises Fund ( NYSEARCA: XSOE ) invests in emerging market companies that do not have 20% or more government participation.

The ETF tracks the performance of the WisdomTree Emerging Markets ex-State-Owned Enterprises index. This index was created in August 2014. The ETF holds 586 holdings across its $2.2 billion in net assets. The total market capitalization of all its holdings is $8.18 trillion. Large-cap stocks of $10 billion or more represent nearly 69% of the portfolio, with the rest composed of mid- and small-cap stocks.

The average holding has a P/E ratio of 18.45x and a P/S ratio of 1.35x. Its current dividend yield is 2.6%.

The top three countries by weight are China (25.22%, India )19.31%, and Taiwan (16.94%. The top three sectors are technology )23.16%, consumer discretionary (19.81%, and finance )15.57%.

Since its inception in December 2014, it has recorded an annualized total return of 3.4% through June 30, 2025.

SPDR S&P China ETF ( GXC )

The SPDR S&P China ETF ( NYSEARCA: GXC ) is the smallest of the three ETFs in terms of assets, with $857.4 million in net assets. It tracks the performance of the S&P China BMI index, a collection of China-based stocks accessible to foreign investors. It is the oldest of the three funds, created in March 2007.

A $10,000 investment at its inception was worth $14,694 as of September 1, 2025. By mid-2020, that same $10,000 was worth over $22,000.

If you do not want a high concentration of Chinese stocks, GXC may not be suitable for you, as the country accounts for 99.67% of the net assets. The top 10 holdings represent 34.3% of the entire portfolio, with Tencent Holdings and Alibaba combining for more than half of the top 10.

The top sectors by weight include consumer discretionary (27.25%, communication services )16.93%, and finance (15.22%.

The ETF uses an sampling process to replicate the index. While the index has 2,044 holdings, the ETF has fewer than half that number with 945. The weighted average market capitalization is $88.5 billion, well within the large-cap category. The typical holding has a P/B ratio of 1.24x and a P/E ratio of 10.10x. GXC offers a dividend yield of 2.93%.