Emerging markets exchange traded funds (ETFs), had a rough week, but  Russia seemed to be one of the hardest hit.  The Russian RTS index ended down 3.2% on Monday, and is now down 9.6% for the year. This makes Russia the worst performer year-to-date among major global benchmarks.

Polya Lesova of MarketWatch.com adds that falling commodity prices, particularly oils and metal, added to a rush to reduce global risk exposure.  This put pressure on the Russian market as well as other emerging markets which tend to have a commodity-driven economy. Other BRIC countries, India, China and Brazil, remain under heavy selling pressure. Insiders to the industry say this market sell-off is following in the patterns of the five previous corrections since 2003.

Central Europe and Russia Closed End Fund (CEE) is down 17.75% for the year, with 45% of the fund in Russia.


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.

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