Russia ETF reflects country’s significant risk

Article Excerpt

Declining commodity prices and international sanctions have hurt the Russian economy. But despite that, the country has proved surprisingly resilient. The economy is on a modest growth path, government finances are in reasonable shape, inflation is under control and the currency has stabilized. Here is one ETF that provides exposure to the top Russian public companies. VANECK VECTORS RUSSIA ETF $20.08 (New York symbol RSX; TSINetwork ETF Rating: Aggressive; Market cap: $1.5 billion) tracks the MVIS Russia Index, which includes publicly traded companies that are incorporated in Russia or that are incorporated outside of Russia but have at least 50% of their revenues/related assets in Russia. Energy firms account for 41% of its assets, with commodities at 23%; Financial Services, 12%; Consumer Defensive, 8%; and Technology, 7.0%. The ETF holds a portfolio of 27 stocks; the top 10 holdings make up a high 56% of its assets. They include Sberbank of Russia (banking, 7.5%), Gazprom (natural gas, 7.4%), Lukoil (oil and gas, 6.5%), Tatneft (oil and…

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