Russia’s benchmark Micex Index “is now trading at the biggest discount to emerging-market equities since at least 2005,” according to Bloomberg.
The Micex currently trades at 4.7 times earnings as stocks ranging from OAO Gazprom to Lukoil and Mobile Telesystems, a combined 20% of RSX’s weight, trade at massive discounts to their average 10-year price-to-earnings ratios.
Of the four major BRIC single-country ETFs, RSX is the only one to add capital this month while no money has been added to or pulled from the iShares China Large-Cap ETF (NYSEArca: FXI) and the WisdomTree India Earnings Fund (NYSEArca: EPI). Investors have pulled nearly $200 million from the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ).
Market Vectors Russia ETF
