The VanEck Vectors Russia ETF (NYSEArca: RSX) is flat year-to-date, but the largest exchange traded fund tracking Russian stocks is higher by more than 53% over the past year and there are potentially more catalysts ahead that could boost Russian financial markets.

Some market observers believe RSX and Russian equities have the wind at their backs in 2017 and not all of that has to do with the newly inaugurated U.S. president. Oil prices have rallied as growing economies devour raw materials to fuel their growth and recent plans to cut production from the oil cartel, the Organization of Petroleum Exporting Countries, along with other non-OPEC members.

“Adding to the case for Russian bonds is the possibility of an upgrade to the country’s sovereign debt rating. Last week, Moody’s Investor’s Service raised its outlook on Russia’s credit rating to stable from negative. Moody’s and Standard & Poor’s currently assign junk ratings to Russian sovereign bonds. Investors should take note of the following ETFs given the possible Russian return to investment-grade status,” reports Investopedia.

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