Exchange traded funds that invest in Russia have bounced along with crude oil prices.
Crude futures advanced almost 2% on Monday morning to nearly touch $87 a barrel. U.S. Oil Fund (NYSEArca: USO) gained over 3% last week.
Market Vectors Russia (NYSEArca: RSX) and Capped Index Fund (NYSEArca: ERUS) are among the ETFs that track Russian stocks. They have large stakes in the energy sector and are sensitive to oil prices. [Russia ETFs Rise on Oil Prices, Outlook]
CurrencyShares Russian Ruble Trust (NYSEArca: XRU) is a currency ETF follows the ruble’s fluctuations versus the U.S. dollar.
“Russia’s latest growth figures show the perils of relying on the oil price to sustain the economy. But growth may soon benefit from the advantages of a floating ruble,” reports The Moscow News.
The ruble ETF has recovered somewhat following a steep drop earlier this month.
“The ruble is severely affected by the risk-off environment that reflects concerns about the EU sovereign debt crisis,” Benoit Anne, head of emerging-markets strategy at Societe Generale, told Bloomberg. “It’s also poorly positioned as a commodity-related currency, given the serious mark-down in the global growth outlook.”
Market Vectors Russia
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
Tisha Guerrero contributed to this article.