Another source of allure for investors evaluating Russian stocks has been heard before: Rock-bottom valuations. Russia’s benchmark Micex Index “trades at 5 times estimated 12-month earnings, the cheapest in emerging markets,” according to Bloomberg.

Russian stocks have a historical tendency of trading at discounts to their emerging markets counterparts and over the past year have become deeply discounted to their own long-term track records. However, RSX has still fallen nearly 22% since the start of 2013. Earlier this year, Standard & Poor’s lowered Russia’s credit rating to BBB-, the lowest investment grade. [Russia ETFs Hold Some Cheap Stocks]

Market Vectors Russia ETF

Tom Lydon’s clients own shares of EEM.