Going the Wrong Way With Russia ETFs

On Thursday, OAO Gazprom and OAO Rosnet, Russia’s two largest oil companies, slid to five year lows after JPMorgan Chase pared its rating on the stocks, citing troubling dividend forecasts, reports Halia Pavliva for Bloomberg.

Rosneft’s 2015 payout could dip 18% and at least one research firm is forecasting a 44% drop for Gazprom’s 2015 dividend, according to Bloomberg.

RSX allocates a combined 12.4% of its weight to Gazprom and Rosneft. The ETF sports a 30-day SEC yield of 3.52%, 155 basis points above the comparable yield on the iShares MSCI Emerging Markets ETF (NYSEArca: EEM).

Market Vectors Russia ETF

Tom Lydon’s clients own shares of EEM.