The interesting case of Russian ETF flows

Is Russia now a buying opportunity or a value trap? An analysis of fund flows for RSX, the largest Russia ETF, shows some interesting results. RSX was down 17% during Q1 ‘14, yet assets in RSX grew by 15% during the quarter.

We used the First Bridge ETF data set to analyze this further and we see the following trend in daily ETF new flows. Net flows refer to new creations or redemptions in the ETF i.e.

Daily Net Flows = Daily Change in ETF Assets – Daily Change due to market movements