Restrictions on Foreign Investment Could Ding Russia's ETF | Page 2 of 2 | ETF Trends

Market Vectors Russia (RSX) gives investors well-rounded access to the lucrative areas of the country. There is heavy exposure to oil and gas companies, as well as commodities. It is no secret these are the sectors that are driving the success of the country, but be warned the investment comes with substantial risk because of the concentration in commodities; 41.9% is weighted in oil and gas, and 23.4% in iron and steel.

Business conditions are always subject to government takeover, or a successful company may be penalized for a random reason. Business interest and activity continue to grow despite this. Telecom is another area that is bustling. RSX gives 12.5% to telecom, and two of the largest providers have seen their stock prices appreciate 400% and 800% in the last five years. The major factor in this growth has to do with the shift away from landlines.

RSX is up 0.3% year-to-date, but the country might be headed for a slowdown after a strong start to the year. Consumer prices are up 15.1% from a year ago, says Edward Hugh for Seeking Alpha, and the government is struggling to bring inflation back down to its target of 10.5%.