What is the best MOEX Russia Index ETF?
5 min read
By Ron Koren, ETF Insider

What is the best MOEX Russia Index ETF?

Investing in exchange-traded funds (ETFs) offers a convenient way to diversify one's portfolio and gain exposure to various financial markets. For those interested in the Russian stock market, MOEX (Moscow Exchange) Russia Index ETFs present an opportunity to invest in leading Russian companies. In this article, we will explore some of the best MOEX Russia Index ETFs and compare them with similar options available in the market.

Best MOEX Russia Index ETFs : Top Performer

One of the top-performing MOEX Russia Index ETFs is the "Russia PowerShares ETF"( ERUS) by ProShares. This ETF aims to track the performance of the MOEX Russia Index, providing investors with exposure to some of the largest companies in Russia. With a strong track record and a focus on large-cap Russian stocks, this ETF has garnered attention from investors seeking growth opportunities in the Russian market.
Comparing it with similar options, the "VanEck Vectors Russia ETF" by VanEck is another prominent player in the market. This ETF also tracks the MOEX Russia Index and offers a broader approach, including mid and small-cap Russian stocks. Investors should carefully consider their risk tolerance and investment objectives when choosing between these two options.

Best MOEX Russia Index ETFs : Diversification Options

For investors looking for more diversified exposure to Russia, the "Emerging Markets ETF" by iShares could be an interesting consideration. Although not exclusively focused on Russia, this ETF includes exposure to various emerging market economies, and Russia is a significant component of its holdings. This ETF allows investors to participate in the growth potential of multiple countries, reducing the reliance on Russia's performance alone.
Another option is the "Global X MSCI SuperDividend EAFE ETF" (EAFE) by Global X. While this ETF encompasses international markets, it includes Russian stocks as part of its EAFE (Europe, Australasia, and the Far East) focus. For investors seeking a broader international exposure beyond Russia, this ETF might be a suitable choice.

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Best MOEX Russia Index ETFs : Currency Hedging

Investors concerned about currency risk can consider the "WisdomTree Europe Hedged Equity Fund" by WisdomTree. This ETF focuses on European equities while mitigating the impact of currency fluctuations between the euro and the investor's base currency. As Russia is part of the European region, investors can gain indirect exposure to Russian stocks through this currency-hedged ETF.
Comparing it with the "CurrencyShares Russian Ruble Trust" by CurrencyShares, investors must weigh their risk appetite and view on currency movements. While the hedged equity fund reduces currency risk, the Russian Ruble Trust allows direct exposure to the Russian ruble's performance against the investor's base currency.

Best MOEX Russia Index ETFs : Dividend Focus

For income-seeking investors, the "SPDR S&P Emerging Markets Dividend ETF" by State Street Global Advisors could be a compelling option. This ETF targets companies in emerging markets, including Russia, with a history of dividend payments. Investing in this ETF provides investors with the opportunity to earn regular dividend income while accessing growth potential in Russian stocks.
Comparing it to the "iShares Emerging Markets Dividend ETF" by iShares, which also focuses on dividend-paying companies in emerging markets, investors should assess the specific allocation to Russian stocks and the dividend yield of each ETF to align with their income objectives.

Conclusion

Investing in MOEX Russia Index ETFs can be a strategic addition to an investor's portfolio, offering exposure to Russia's dynamic economy. When selecting the best ETF, investors should consider their risk tolerance, investment goals, and preferences for diversification or income focus. It's essential to conduct thorough research and, if necessary, consult with a financial advisor before making any investment decisions.
Disclaimer: This article is for informational purposes only and does not provide any investment advisory services.

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FAQ

  • What is the MOEX Russia Index ETF?

    The MOEX Russia Index ETF is an exchange-traded fund that aims to track the performance of the MOEX Russia Index. This index represents the performance of the largest and most liquid stocks listed on the Moscow Exchange (MOEX) in Russia.

  • What is the underlying index that the MOEX Russia Index ETF aims to track?

    The MOEX Russia Index ETF aims to track the performance of the MOEX Russia Index, which includes a diversified selection of stocks from various sectors of the Russian economy.

  • What types of companies are included in the MOEX Russia Index ETF?

    The MOEX Russia Index ETF includes companies from a wide range of sectors, such as energy, finance, telecommunications, consumer goods, and more. The index aims to represent the overall performance of the Russian stock market.

  • How does the MOEX Russia Index ETF work?

    The MOEX Russia Index ETF works by pooling investors' money to purchase a portfolio of securities that closely mirrors the composition and performance of the underlying MOEX Russia Index. This allows investors to gain exposure to a diversified basket of Russian stocks.

  • What are the advantages of investing in the MOEX Russia Index ETF?

    Investing in the MOEX Russia Index ETF provides investors with an opportunity to gain exposure to the Russian stock market without directly purchasing individual stocks. It offers diversification across various sectors of the Russian economy and can be traded like a stock on the exchange, providing liquidity and flexibility.