Russia is the largest country in the world. The country is rich in natural resources, especially oil and natural gas. In addition, the country is one of the fastest growing emerging markets in the world and a member of the BRIC. Russia is among the most important exporters of energy in the world and that is why it is best known among international investors for its energy industry. Besides the energy sector, Russia has strong emerging industries (such as information technology and telecommunications). The mining and production of precious and non-precious metals is an enormous industry in the country. Moreover, Russia has one of the largest populations in the world. Many Russians spend an increasing amount of their income on luxury goods, services and holidays, which drives the domestic consumption. One of the safest way to invest in Russia is through Exchange-Traded Funds. Russia ETFs may help with diversification of an overall portfolio or hedge against country-specific risk to Russian investments such as changes to Russian law. There are not many Russian ETFs and they are tied with high level of risk. The lack of predictable tax and business legislation has been a great barrier for private investments. The Russian economy is mostly commodity based, in order to reduce investment risk investor should remember about the direction of the commodity prices. The country still faces higher than other emerging markets level of instability. The risks and rewards of investing in Russia are both high.
Small-cap, Russia ETF is in the long-term down -33% below S&P in 2 years.
|Symbol||Company Name||Price||Change||Total net assets||Total expense ratio|
|ERUS||Ishares Msci Russia Capped Index Fund||32.56||-0.09%||288.56 M||0.61%|
|RBL||SPDR S&P Russia ETF||19.88||0.15%||0.59%|
|RSX||Market Vector Russia ETF Trust||20.59||0.1%|
|RSXJ||Market Vectors ETF Trust||37.57||-0.08%|
|RUSL||Direxion Shares Exchange Traded Fund Trust||92.71||0.18%|
|RUSS||Direxion Shares Exchange Traded Fund Trust||6.79||-0.29%|