Why Russia ETFs Are Not A Debt-Crisis Safe Haven

By
Devon Layne
June 08, 2012
Share:

 

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

International equity funds like 'HEDJ' and 'EFAV' added assets on Thursday, Jan. 29, as total U.S.-listed ETF assets rose above $2 trillion.

'SPY,' 'XLF,' 'XLI' and 'BIL' paced SSgA's issuer-leading outflows on Thursday Jan. 29, as total U.S.-listed ETF assets rose above $2 trillion.

ETF.COM ANALYST BLOGS

By Dave Nadig

The world’s biggest ETF conference made a number of important things amply clear.

By Dave Nadig

Sometimes it’s what’s under the hood that matters. Sometimes it’s not.

By Dave Nadig

President Obama may be undermining the benefits of tax-loss harvesting.

By Scott Burley

Wouldn’t it be nice to know if your favorite ETF were part of a securities-lending program?