The ETF is not for the faint of heart. For example, RSX fell 73.6% in 2008, then rallied 139.2% in 2009.
“The Russian stock market is one of the most volatile in the world … As such, we think RSX is suitable only as a satellite holding for the most risk-tolerant investors,” says Morningstar analyst Patricia Oey in a profile of the ETF.
“The extreme volatility of Russian stocks can be partially explained by the fact that the Russian economy is heavily dependent on oil and gas exports and as such is sensitive to fluctuating energy prices,” she added.
At the end of April, RSX had 42.9% in the energy sector and 17.5% in the materials sector.
Market Vectors Russia
