The fragile nature of peace talks between the two countries are one reason why some traders have recently been willing to pay up to hedge long positions in RSX, a scenario highlighted last week. Highlighting the skittishness that is often associated with trading Russian stocks and ETFs like RSX from the long side, the cost of hedging those long positions in RSX has jumped to a 17-month high, reporte Natasha Doff for Bloomberg last Friday. [Russia ETF Bulls Pay up to Hedge]
Still, the cease-fire speculation is having a trickle down impact on Wednesday, lifting several ETFs beyond the aforementioned Russia funds. For example, the iShares MSCI Poland Capped ETF (NYSEArca: EPOL) and the Market Vectors Poland ETF (NYSEArca: PLND) are both up about 3%.
The WisdomTree Emerging Markets Equity Income Fund (NYSEArca: DEM) is higher by 2.1%. DEM, the largest emerging markets dividend ETF, features a 17% weight to Russia, more than triple the weight allocated to that country by the MSCI Emerging Markets Index.
Market Vectors Russia ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of DEM.