What You’re Really Getting When You Buy BRICs

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Oct. 11 (Bloomberg) -- On today's "Chart Attack," JPMorgan Funds Global Market Strategist Andres Garcia-Amaya and Bloomberg's Adam Johnson look at investing in emerging markets. They speak on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Today we are talking emerging markets and what you need to know about what you are really buying.

Andres garcia-amaya is joining us, our closer from jpmorgan.

This comes from page 55 of your flip took -- book.

Can we get one of these?

You can go to the jpmorgan website and check it out.

You talk about what is in these countries.

Walk us through it.

When people think of emerging markets, they think of a big blob.

You look at the composition of each country's equity markets, they are each different.

We have got a great looking chart.

A lot of colors.

We have labeled them.

What jumps out to me the most is commodities in blue.

2.3 of t -- 2/3 of the russian market is commodities based.

People may want to get exposure.

What you are really buying is commodities when you buy an etf.

Here is another surprise.

33% of china is the banking sector.

The commercial banks are a significant part of the overall chinese equity market.

A lot of them are publicly listed.

They are controlled by the government.

It is important to note if you are truly trying to get exposure there, you might want to diversify away from commercial banks in china.

We talk about the emerging consumer in china.

36% of the mexican index is consumer.

Maybe it is mexico if you want to play the emerging consumer.

A lot of durable goods are geared towards the u.s. economic recovery.

Mexico is appealing the next couple of years as you see the u.s. are covering.

When investors say we want exposure to emerging markets, are you sending them to specific country funds so you're able to break out these different ones?

You need to look at the country level composition and figure out which stocks in those countries look appealing.

A lot of people would be surprised what they are buying when they are buying an eftf.

Do you have different funds focused towards countries or more towards different sectors across countries?

We have both.

We have country level as well as funds that look at emerging markets as a whole.

You have got to know what you

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