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

Small-cap stock ETF 'IWM' took a breather and found itself among the biggest creations on Monday, July 27, raking in more than $420 million in one day. Total U.S.-listed ETF assets dropped to $2.111 trillion.

A roster of ETFs including 'IJH' and 'IWM' paced iShares' issuer-leading inflows Monday, July 27. Total U.S.-listed ETF assets dipped to $2.111 trillion.

ETF.COM ANALYST BLOGS

By Paul Britt

Toss and turn about whether to hedge currency risk, but don’t lose sleep over the derivatives themselves.

By Dave Nadig

With the China A-share market half-broken, ETF investors should be very, very cautious.

By Drew Voros

Price depreciation and continued outflows have made for a tough few years.

By Dave Nadig

Legendary investor trips over how ETFs work.

ETF INDUSTRY PERSPECTIVE

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.

By Invesco PowerShares

Smart beta appears to be poised for further growth.