Leveraging Strength or Weakness in Russia 1

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Russia poses an interesting opportunity due to its price relative to its fundamental valuation, making it an attractive option for value investing–a case for RUSL. Then again, the ramifications of US sanctions can rear its ugly head, which makes the case for RUSS.

Either way, Russia gives ETF investors an opportunity to profit for bulls or bears who have a healthy appetite for risk.

Per Direxion, “Traders who can stomach the substantial geopolitical risks see a big pay day. Russian stocks have become extremely cheap. Of the major countries in the world, Russia has become one of the cheapest on measures such as P/E ratio and P/B (price-to-book) ratio. The country’s stocks also boast one of the highest average dividend yields. The current average P/E ratio comes in at just above 7.5. It had fallen as low as 3.5 times earnings following the recent slump in oil prices. This compares to almost 22 in the United States.”

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