BRIC ETF

  

It looks like an entry in an anagram wordplay game. "This BRIC ETF" becomes "britches fit" or "fiber stitch."

But, in fact, it represents a way to invest in a particular group of countries...the so-called BRIC countries. These consist of Brazil, Russia, India, and China. The idea is that all of these economies are up-and-coming, potentially high-growth investment plays.

The term "ETF" stands for "Exchange Traded Fund." It's like a mutual fund that trades as a stock. Usually, it has some focus, allowing an investor to buy into whole sectors or particular concepts. So there are technology ETFs and China ETFs and tobacco ETFs, etc.

The BRIC ETF lets you invest in a basket of stocks tied to the BRIC countries. Except you don't have to buy all the stocks individually. You just have to buy the ETF. It lets you bet on the concept, without having to worry about individual stock risk. Which, when anagrammed, is "sick stork."

Find other enlightening terms in Shmoop Finance Genius Bar(f)