Why Russia ETFs Are Not A Debt-Crisis Safe Haven

By
Devon Layne
June 08, 2012
Share:

Related ETFs

Ticker Fund name
RSXMarket Vectors Russia
RSXJMarket Vectors Russia Small-Cap
Related ETF Lists
Europe ETFs

 

Relatively debt-free Russia may look attractive to investors looking to steer clear of a eurozone sinking in debt, but Russian dependence on the performance of oil keeps it from becoming a true safe haven, according to an article on Zacks.

Indeed, with oil prices tumbling, positives in Russia such as strong exports and little banking exposure to the eurozone are outweighed, the article said. Russia is the world’s biggest crude oil exporter and is tied with Saudi Arabia in terms of oil production, said Eric Dutram, contributor to the Zacks article.

The Market Vectors Russia ETF Trust (NYSEArca: RSX) and the Market Vectors Russia Small Cap ETF (NYSEArca: RSXJ) lost over 11 percent and 16 percent, respectively, over the past six months—echoing to some extent crude’s slide and falling behind broad European markets, the article said.

To read Dutram’s full perspective, visit Zacks.com.

ETF DAILY DATA

WisdomTree's 'HEDJ' pulled in more assets on Friday, March 27, as total U.S.-listed ETF assets rose to $2.089 trillion.

A big 'SPY' redemption paced SSgA's issuer-leading outflows on Friday, March 27, as total U.S.-listed ETF assets rose to $2.089 trillion.

ETF.COM ANALYST BLOGS

By Dave Nadig

How Ric Edelman is reinventing the ‘new economy’ investing paradigm.

By Olivier Ludwig

What’s cooler than an ETF with a ticker like ‘HACK’? The way investors are using it.

By Olivier Ludwig

Yes, 2015 is shaping up to be the ‘year of currency hedging,’ but that’s not necessarily a good thing.

By Elisabeth Kashner

ETF.com steps in to referee a catfight that has erupted in the world of robo advisors.