The advantage there is the rock-bottom valuations found on Russian stocks, including energy names. Last month, one fund manager told Barron’s Gazprom shares could triple in three years and that the stock’s dividend yield could range from 4.5% to 6% this year. [Is Russia Cheap Enough?]
Gazprom trades 2.5 times earnings, or 59% discount to its 10-year average while Lukoil trades at four times, a 38% discount to its 10-year average, according to Bloomberg. [Russia ETFs Have Plenty of Cheap Stocks]
Overall, EMEY reflects the discounts available with emerging markets energy names. The ETF has a price-to-book ratio under 1.3 compared to 2.74 for the iShares U.S. Energy ETF (NYSEArca: IYE), according to iShares data.
iShares MSCI Emerging Markets Energy Capped ETF
