Start with the BRICs, boot out Russia, and add in South Korea. That’s the essence of the new First Trust BICK Index Fund (BICK) that began trading yesterday (4/13/10). The underlying ISE BICK Index is designed to track the largest and most liquid companies domiciled in Brazil, India, mainland China, and South Korea.
Each country receives an equal 25% allocation in the index, consisting of up to 25 stocks, which are also equally weighted. Theoretically, the index would consist of 100 stocks with each having a 1% allocation. However there are currently only 87 holdings, and the top ten holdings all have weightings of more than 2%. It appears only 12 stocks from India meet the index inclusion requirements, so they receive a larger weighting in order to keep India’s country weighting at 25%.
The largest sectors are Financials 24.8%, Technology 22.1%, Materials 13.4%, Industrials 9.6%, and Telecommunications 8.5%. The top holdings, all from India, are Icici Bank (IBN), Satyam Computer Services (SAY), Tata Motors (TTM), Patni Computer Systems (PTI), and Infosys Technologies (INFY). The new ETF will have an expense ratio of 0.70%.
At the time of publication, the BICK summary page was not active, but it should eventually be included in the First Trust ETF list. The First Trust homepage contains links to the BICK fact sheet and the Investor Guide pdf.