Van Eck Global seems to have timed the launch of their Russian exchange traded fund (ETF) perfectly. An "emerging markets" party if you will, Market Vectors Russia ETF (RSX) hit the market in May, just as equity markets began their great upswing in Russia, reports Trading Markets. RSX is up 23.7% since inception.
Russian equities usually equals oil and gas. As of August 31, two giants of the energy sector made up roughly 15% of the 30 listed companies on the DAXglobal Russia+Index. This is RSX’s benchmark and that means nearly one-fifth of your investment will be tied up in two companies: Rosneft and Gazprom. The remaining holdings are utilities, and there are more within the energy sector. Aside from this risk, there are also political considerations and economic risks that come with any emerging market or investment. Another way to gain exposure to Russia with a little more diversification is through the BRIC (Brazil, Russia, India, China) ETFs.
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.