Since this spring, Russia’s exchange traded fund (ETF) has been in a free-fall, dropping off 46.6% following its May 19 high. Market Vectors Russia (RSX) is also down 38.6% year-to-date.

The fund’s weighting in certain sectors that have fallen on hard times hasn’t helped, either: it has 39% in oil and gas companies, 22.3% in metals and 13% in telecom. Russia’s well-being hinges on energy, says Trang Ho for Investor’s Business Daily.

The sector accounts for one-fifth of GDP, which rose 8.1% last year. Oil and gas generated 65% of export revenues and made up 30% of all foreign direct investment in the country, according to the World Bank and IMF. This year’s GDP is forecast to grow by 7%.

It’s a reversal of fortune for the country and the fund, as it was the darling of investors earlier this year. It rose 15.1% from the start of the year through May, when it began its descent. Equity funds have been losing assets, and as of Sept. 5, outflow totaled $859 million.

Considering that investors are still pulling money out in light of the political situation right now, a rebound for the fund is unlikely anytime soon, according to a Merrill Lynch research report.

Tags: Eastern Europe, Emerging Markets, RSX, Russia, Sector ETFs