BRICS vs. Next 11: Which Emerging Markets Offer More?
BRICS offers scale and liquidity for core emerging market exposure, while the Next 11 provides higher growth potential with more risk. The best approach combines both — 60-70% in BRICS leaders like India and Saudi Arabia, with 30-40% in N-11 picks like Vietnam, Indonesia, and Mexico.
You are looking at your portfolio and wondering where to put your next dollar. Developed markets feel expensive. Emerging markets investing sounds exciting, but the options are overwhelming. Two groups dominate the conversation: BRICS and the Next 11. Which one deserves your money?
The quick answer: BRICS gives you scale and liquidity. The Next 11 gives you untapped growth potential with higher risk. Your choice depends on your risk appetite, time horizon, and how much volatility you can stomach.
What Are BRICS and the Next 11?
BRICS originally stood for Brazil, Russia, India, China, and South Africa. In 2024, the group expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. These are large economies with significant global influence.
The Next 11 (N-11) is a Goldman Sachs concept from 2005. It includes Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam. These countries were identified as having the potential to become major economies by 2050.
Some overlap exists. Egypt and Iran sit in both groups. South Korea has already graduated to developed-market status by most measures. So the groups are not perfectly clean categories.
BRICS: The Heavyweights
BRICS members account for about 37% of global GDP (purchasing power parity) and over 40% of the world's population. These are not small bets. You get exposure to:
- China — the world's largest manufacturer and second-largest economy
- India — fastest-growing large economy with a massive consumer base
- Saudi Arabia and UAE — energy giants with aggressive diversification plans
- Brazil — agricultural superpower and commodity exporter
- Russia — resource-rich but heavily sanctioned since 2022
The upside of BRICS is liquidity. These markets have deep stock exchanges, established ETFs, and large institutional investor presence. Getting in and out is relatively easy.
The downside is political risk. Russia is practically uninvestable for Western investors. China faces regulatory crackdowns and a property crisis. South Africa struggles with power outages and corruption. Scale does not mean safety.
Next 11: The Dark Horses
The N-11 countries are younger, faster-growing, and less discovered by global capital. That is both the opportunity and the risk.
- Vietnam — manufacturing is booming as companies diversify away from China
- Indonesia — largest economy in Southeast Asia, rich in nickel and commodities
- Mexico — nearshoring wave brings factories closer to the US market
- Bangladesh — garment exports power steady GDP growth above 6%
- Philippines — young population, growing BPO and remittance economy
- Nigeria — Africa's largest economy by GDP, oil-dependent but reforming
The attraction of N-11 markets is early-stage growth. Valuations are cheaper. Demographic profiles are younger. The urbanization wave is still early. If you invested in India or China 20 years ago, you know what early positioning can deliver.
The downside is access and governance. Many N-11 markets have thin trading volumes, weak regulatory frameworks, and currency risks that can wipe out returns overnight. Pakistan's rupee lost 40% of its value against the dollar between 2022 and 2024. Nigeria restricted foreign exchange access for months.
Head-to-Head Comparison
| Factor | BRICS | Next 11 |
|---|---|---|
| GDP share (global PPP) | ~37% | ~12% |
| Average GDP growth | 3.5-5.5% | 4-7% |
| Market liquidity | High | Low to Medium |
| ETF availability | Many options | Limited |
| Political risk | Medium-High | High |
| Currency stability | Mixed (CNY stable, RUB volatile) | Generally volatile |
| Demographic profile | Aging (China, Russia) / Young (India, Egypt) | Mostly young |
| Valuation (P/E avg) | 12-18x | 8-14x |
| Sector depth | Tech, energy, finance, consumer | Manufacturing, commodities, services |
| Best for | Core EM allocation | Satellite / high-conviction bets |
The Verdict: Which Should You Choose?
If you want stable emerging markets investing with decent liquidity, BRICS is your core allocation. India and Saudi Arabia stand out as the strongest picks within the group right now. China offers value but carries regulatory uncertainty.
If you want higher growth and can tolerate volatility, add N-11 exposure as a satellite position. Vietnam, Indonesia, and Mexico are the three strongest candidates. They benefit from supply chain shifts away from China and have improving governance.
The smartest approach is not either-or. Allocate 60-70% of your emerging market bucket to BRICS (focus on India, Saudi Arabia, Brazil). Put 30-40% into select N-11 markets (Vietnam, Indonesia, Mexico). Rebalance annually.
Do not treat these groups as fixed labels. South Korea has outgrown the N-11 tag. Russia dropped out of investable BRICS for most Western portfolios. Markets evolve. Your allocation should too.
The real edge in emerging markets investing is not picking the right group. It is picking the right countries within each group at the right time. Both BRICS and N-11 hold winners. Your job is to find them.
Frequently Asked Questions
Are BRICS countries safe investments?
No investment is completely safe. BRICS countries offer more liquidity and larger economies than most emerging markets, but they carry political risk (Russia sanctions, China regulations), currency risk, and governance concerns. India and the UAE are currently among the more stable BRICS members for investors.
Can I invest in Next 11 countries through ETFs?
Options are limited compared to BRICS. A few frontier market ETFs cover some N-11 countries. Vietnam and Indonesia have dedicated country ETFs. For others like Bangladesh or Nigeria, you may need to use actively managed funds or direct market access through a global broker.
Which emerging market group has better returns historically?
BRICS dominated returns from 2000-2010, driven by China and India. N-11 markets like Vietnam and Indonesia have outperformed several BRICS members in the 2020s. Historical returns vary widely by country and time period, so group-level comparisons can be misleading.
Frequently Asked Questions
- Are BRICS countries safe investments?
- No investment is completely safe. BRICS countries offer more liquidity and larger economies than most emerging markets, but they carry political risk (Russia sanctions, China regulations), currency risk, and governance concerns. India and the UAE are currently among the more stable BRICS members for investors.
- Can I invest in Next 11 countries through ETFs?
- Options are limited compared to BRICS. A few frontier market ETFs cover some N-11 countries. Vietnam and Indonesia have dedicated country ETFs. For others like Bangladesh or Nigeria, you may need actively managed funds or direct market access through a global broker.
- Which emerging market group has better returns historically?
- BRICS dominated returns from 2000-2010, driven by China and India. N-11 markets like Vietnam and Indonesia have outperformed several BRICS members in the 2020s. Historical returns vary widely by country and time period, so group-level comparisons can be misleading.
- What is the difference between emerging and frontier markets?
- Emerging markets have larger, more liquid stock exchanges and better regulatory frameworks. Frontier markets are smaller, less liquid, and earlier in their development. Most BRICS members are emerging markets. Several N-11 countries like Bangladesh and Nigeria are classified as frontier markets.
- How much of my portfolio should go to emerging markets?
- Most financial advisors suggest 10-25% of a global equity portfolio in emerging markets, depending on your risk tolerance and time horizon. Within that allocation, you can split between established BRICS markets for stability and select N-11 markets for higher growth potential.