Investors will now have a way of reaching the emerging market of Russia via a Van Eck exchange traded fund (ETF). This will be the first ETF that aims at Russia alone. The Russian economy has been boosted by high energy prices and rising consumer spending; expanding more than 6% in 2006. Despite attracting attention from international investors, Russian stocks aren’t necessarily expensive, says Ian Salisbury of The Wall Street Journal. The proposed Van Eck ETF is not for the weak of heart, considering the extreme volatility in emerging markets. the Templeton Russian and Eastern European (TRF) closed-end fund chart is below highlighting a 46% decline early last year. Our thoughts are very positive about this ETF, but be sure to have a stop-loss in place if you’re going on vacation.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.