Reports that Russia has moved military equipment into Eastern Ukraine are tanking Russia ETFs.
Chart courtesy of StockCharts.com
Once again, things are escalating in Eastern Ukraine, but this time markets seem to think the situation is particularly troublesome, as Russian stocks and the ruble are sinking rapidly.
As Reuters reports, evidence of Russia's presence in Eastern Ukraine seems to be mounting, and that has markets frazzled. The United Nations and the United States in particular have been vocal about drawing a line in the sand and keeping Russia out of Ukraine and the latest incursions may have crossed that line.
RSX and ERUS both track plain-vanilla, market-cap-weighted indices of Russian stocks. ERUS requires that its portfolio companies are listed or domiciled in Russia, whereas RSX also includes foreign companies that earn the majority of their revenue in Russia. RSX's wider scope produces a larger basket of 46 stocks, which is more than twice as many names as ERUS' more concentrated 20-company portfolio.