A gala time for investors in Russia-focused ETFs
If you’re an investor in Russia-focused ETFs, then 2016 has been quite a celebratory year for you. Popular ETFs like the VanEck Vectors Russia ETF (RSX), the iShares MSCI Russia Capped ETF (ERUS), and the SPDR S&P Russia ETF (RBL) have risen in the 49%-52% range in YTD 2016 until December 13. The rise is not limited to broad-based ETFs either. In fact, the VanEck Vectors Russia Small-Cap ETF (RSXJ) has outdone its broad-based peers by posting a rise in triple digits. RSXJ is up 107% in the same period.
In this series, we’ll look at the reasons which have contributed to the phenomenal rise in Russia-focused ETFs. But first, let’s take a brief look at the ETFs themselves.
The VanEck Vectors Russia ETF (RSX) tracks the performance of the MVIS Russia Index. The Index comprises of just 28 stocks while the RSX is invested in 32 securities. Given Russia’s dependence on crude oil, 40.6% of the Index comprises of stocks from the energy sector. Materials are a distant second, followed by financials. Consumer staples is the only other sector which forms over a tenth of the Index.
The net expense ratio of the RSX is 0.67%. The 12-month trailing Price/Earnings ratio of the RSX until November 2016 is 9.21 while the Price/Book ratio is 1.05. The ETF has an asset size of $2.5 billion.
The RSX is up 49% for this year so far and has risen 20% in the last one month until December 13.
The iShares MSCI Russia Capped ETF (ERUS) tracks the performance of the MSCI Russia 25/50 Index. The Index tracks the performance of large and mid-cap Russian stocks. The Index comprises of 21 stocks while the ERUS is invested into 28 securities. Stocks from the energy sector dominate the index, forming 48% of the total composition. Financials are a distant second, followed by materials.
The net expense ratio of the ERUS is 0.62%. The 12-month trailing Price/Earnings ratio of the ERUS until December 12, 2016 is 7.8 while the Price/Book ratio is 0.81. The ETF has an asset size of $439 million.
The ERUS is up 57% for this year so far and has risen 22% in the last one month until December 13.
Let’s continue this analysis for the remaining three ETFs in the next article of this series.