The point of view on Russian blue-chip oil companies is changing, due to earnings surprises in strong oil prices and this is can affect the Russian-focused exchange traded fund (ETF). J.P. Morgan Chase began coverage of Russia’s oil companies and believes it is misunderstood and undervalued. "Positive fundamental sector dynamics" may deliver valuations and earnings performance over 12-18 months, reports Polya Lesova for MarketWatch.

Oil and natural gas products make up over 65% of Russia’s total exports, and the Russian stock market is dominated by oil and gas stocks, accounting for at least 50% of the RTS index. Oil and gas make up 37.1% of Market Vectors Russia ETF (RSX), which is up 22.5% since its May inception.

Tags: Natural Gas, Oil, Russia, Sector ETFs