Russia ETF: Gateway to Russia and Commodities
July 23rd at 7:51am by Tom Lydon
The Russian economy has come to life, and U.S. investors can now tap into this market with exchange traded funds (ETFs). As we’ve mentioned before, the BRIC countries (Brazil, Russia, India and China) are having a growth spurt, with expectations of outgrowing other economies during the next several decades. Russia’s market has been watched by American investors for a long time, however, of the four BRIC countries, it is the most volatile. Because Russian companies aren’t listed on the American exchanges, ETFs make a safe and easy route to gain exposure. The Russia-specific Market Vectors Russia ETF (RSX), which has been on the market since May, has returned 13% so far.
After the collapse of the Russian economy, investors have been shy to put their money there. As of late, Russia has been seen as a commodities giant, with reserves of oil, coal, natural gas and minerals, reports Jonas Emerraji for TheStreet.com. RSX’s primary holdings are in oil, gas, iron and steel companies. It is also noteworthy to remember that energy prices are rising globally.
