de Haas notes that RSXJ’s underlying holdings “trade at just a 2.2 times weighted average cash flow.” That implies the ETF is inexpensive even by the standards of chronically discounted Russian stocks. Russia’s benchmark Micex trades at less than five times earnings, roughly half the P/E ratio seen on the MSCI Emerging Markets Index.
Indeed, RSXJ is inexpensive compared to RSX. The small-cap ETF had a trailing 12-month price-to-book ratio of just 0.34 at the end of March, less than half RSX’s price-to-book ratio.
Market Vectors Russia Small-Cap ETF
ETF Trends editorial team contributed to this post.