A Country ETF Backed by a Smart Central Bank

Russia ETFs have impressed this year particularly when considering market observers widely expect Russia’s worst post-Soviet era recession to extend throughout this year. Onlookers remain cautious over the market outlook.

SEE MORE: Examining Russia ETFs

Gains for Russian stocks have been arriving against the backdrop of a weaker ruble and the currency now looks inexpensive against developed and emerging peers. Earlier this month, Russia’s central bank lowered its benchmark lending rate by 50 basis points to 10%. It is expected Russia will hold off on more rate cuts until next year.

“The aggressive actions by the central bank have created stability in the equity markets — and foreign investors have entered in droves,” according to ETF Daily News.

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