Some market watchers are criticizing that the Russian stock rally could be a “reversion to mean” phenomenon, where sold-off shares and ETFs rebound as bargain hunters look for investments at discounts, reports Ho.
The Russia ETFs are “trading at cheap multiples so that may have brought out the bargain seekers, ” Michael Krause, president of AltaVista Research, said. “(They) are forecast to see declines in earnings per share this year in the single digits due to their reliance on energy.” [Best Emerging Market ETFs]
The iShares MSCI Russia (NYSEArca: ERUS) is another ETF tracking the market. Russ Koesterich, iShares global chief investment strategist, in a blog post argues investors should overweight Russia after Putin’s win.
Market Vectors Russia
Tisha Guerrero contributed to this article.