"The uptrends in the currencies and stock markets of the BRAC countries show that such increased leeway does indeed translate into good results, and we look for more of the same well into the future.

"For investors, the easiest way to gain a broad stake in BRAC countries is to buy an exchange-traded fund (ETF) linked to the major stocks that trade on a BRAC country’s public market.

"Each BRAC country has at least one ETF linked to a major stock exchange. Our favorites are iShares Brazil (NYSE: EWZ), iShares Russia (NYSE: RSX), iShares Australia (NYSE: EWA), and iShares Canada (NYSE: EWC).

"The fastest-growing countries, Russia and Brazil, have the lowest per-capita incomes and lowest per-capita energy consumption, while natural resources account for more of their stock markets.

"You might conclude these two countries therefore have the most potential. And that’s true—but with a caveat: as they develop, Russia and Brazil increasingly will need to draw on their own abundant resources for internal consumption to fuel their growth.

"By contrast, Australia and Canada, with higher incomes, have economies that are more mature, more service-oriented, and less reliant on their own natural resources. In fact, both will be able to grow while conserving resources,

"So it’s the old trade-off between risks and rewards. Brazil and Russia offer greater growth but with more risk.

"For Australia and Canada, their rich resource bases are more a matter of giving them protection in a commodities-short world, though they also do confer a big edge in sustaining growth and in keeping their currencies strong.

"The bottom line: all four ETFs should outperform the U.S. stock market in coming years. We advise taking positions in each."