Why Russia ETFs Are Not A Debt-Crisis Safe Haven

By
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.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

International equity funds like 'IEMG' led inflows on Monday, May 18, as rising markets lifted U.S.-listed ETF assets to a record $2.174 trillion.

'SPY' and 'GLD' paced SSgA's issuer-leading outflows on Monday, May 18, as rising markets lifted total U.S.-listed ETF assets to a record $2.174 trillion.

ETF.COM ANALYST BLOGS

By Olly Ludwig

Yields will one day head higher, so is it time to get bond exposure outside the U.S.?

By Rachael Revesz

Stop dancing around the subject, call women ‘women’ and let’s be a more visible part of this industry.

By Olly Ludwig

It’s no secret that hedge funds love ETFs, but what’s less appreciated is that their love of ETFs will likely spell their demise.

By Olly Ludwig

Yes, bond yields are ticking higher these days, but it’s important to keep the whole yield-curve picture in mind.