Conservative ETF Avenue to Russia Soars Again

Not to mention that even with the recent rally, Russian stocks are still deeply discounted relative to their developing world peers.

“Russia stands out, both for its low single-digit number and because it is selling at nearly a 50% discount to its historical median level. Of course, earnings may fall in the next year, given the collapse in oil prices, but even a 50% fall in earnings would leave Russia selling at a large discount to the rest of the emerging market,” added Schwartz.

At the end of January, the trailing P/E ratio on the MSCI Russia Index was 3.4, barely more than half the 20-year median of 6.6, according to WisdomTree data.

WisdomTree Emerging Markets Equity Income Fund

Tom Lydon’s clients and Todd Shriber own shares of DEM.