Investing in Russia ETFs is one way to gain exposure to the Russian market along with BRIC ETFs. At the moment, there are two Russian ETFs in which investors can explore profit potentials in this vast country. There is the SPDR S&P Russia ETF (RBL), and the Van Eck’s Market Vectors Russia ETF (RSX). Both of these are entirely invested in one of the world’s largest and fastest growing economies.
The SPDR S&P Russia ETF (RBL) is the newest kid on the block. It was introduced into the market on March 10, 2010 and has an average daily trading volume of 7.9k with $4.6 million in assets. The asset composite of this ETF has many of the same companies as its rival RSX which include Gazprom, Lukoil, Rosneft, and Surgutneftegaz in the energy sector. With a very short track record, not much can be said other than the price variation of this ETF in the time it has been traded is between $29.43 and $33.25, with fund expenses at 0.59%.
The Van Eck’s Market Vectors Russia ETF (RSX) has a longer track record being incepted on April 27, 2007. In that time, it has reached the heights of $58.84 a share, to a low of $10.84. The daily average volume is 2.8 million with $2.0 billion in assets. Over 40% of the fund is in the volatile energy sector with Industrial Materials following at 26.4%. Despite losing 73.61% in 2008, this ETF had a return for 2009 at 139.25%. Its YTD performance is at 8.72%. The expense ratio of this fund is at 0.62%
For those thinking of ETF investing in Russia, remember this is an emerging market that has a long history of corruption, governmental interference in the private sector, and poor governance of said private sector. Russia is an economic power house that is here to stay. The only question is its stability and if investing in Russia ETFs is worth the problems that come along with them.
For additional resources about ETF on this website, please view Investing in Homebuilder ETF Funds.
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