ISHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND $24.07 - New York symbol ESR

ISHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND $24.07 (New York symbol ESR; buy or sell through brokers), is an ETF that aims to track the MSCI Emerging Markets Eastern Europe Index. The fund’s geographic breakdown is as follows: Russia, 75.4%; Poland, 18.4%; Czech Republic, 3.2%; and Hungary, 2.6%.

The fund’s top holdings are Gazprom (Russia: gas utility), 15.4%; Sberbank (Russia: bank), 11.5%; Lukoil (Russia: oil), 11.1%; Magnit OJSC (Russia: retailing), 4.0%; Mobile TeleSystems (Russia: wireless), 3.6%; Novatek (Russia: natural gas), 3.3%; Uralkali (Russia: potash), 3.3%; Rosneft Oil Company (Russia: oil and gas), 3.3%; Tafneft (Russia: oil and gas), 3.2%; and PKO Bank Polski SA (Poland: banking), 3.1%.

iShares MSCI Emerging Markets Eastern Europe Index Fund’s expense ratio is 0.69%.

The fund’s concentration in Russia adds risk. But the long-term outlook for resource prices, including oil, is positive. That’s a big plus for Russia’s largely resource-based economy, which is forecast to grow by 3.6% in 2013.

iShares MSCI Emerging Markets Eastern Europe Index Fund is a buy for safety-conscious investors who are willing to accept some risk.

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