Tag Archives: Ukraine

To Russia With Love: Market Vectors Russia ETF RSX:US

bloomberg lp logoMarketsMuse update courtesy of extract from Bloomberg LP Elena Popina and Jackie Klauberg

Что ты собирáeшься дéлать с таки́ми больши́ми деньгáми?

(translation: What are you going to do with all that money?)

russia with loveInvestors are piling into the biggest exchange-traded fund tracking Russian equities at a record pace as the cheapest valuations in emerging markets and easing tension in Ukraine spur bets stocks will rebound.

The number of outstanding shares in the Market Vectors Russia ETF (RSX:US) has soared 59 percent since early August to 94.5 million, the highest level since April 2011. The demand is building after the fund tumbled (RSX:US) 12 percent in the last three months to trade near a five-year low.

The ETF is swelling as investors speculate that Russian stocks, which have dropped the most in the world this year as international sanctions curbed growth, will recover amid signs the seven-month conflict in Ukraine is easing. Foreign Minister Sergei Lavrov said yesterday the country will recognize the results of parliamentary elections in the former Soviet republic as a cease-fire entered its eighth week.

“Waning geopolitical tensions and low valuations could be a good reason to invest and then cash in, once the valuations go up,” Ivan Manaenko, head of research at Veles Capital LLC in Moscow, said by phone on Oct. 27. “Any absence of fighting and any evidence of dialog is seen by investors as positive.”

To continue reading the story from Bloomberg LP, click here

Junk Bond Outflows VWEHX: Garbage To Some; A Gem To Others

etfcomlogoAs Junk Bond ETF outflows accelerated in the past 6 weeks, MarketsMuse editor team has been intrigued by two most recent articles profiling where and whether it makes sense (and hence dollars) for high-yield bonds (and respective ETFs) within a portfolio.

Per articles today from RIA Larry Swedroe via ETF.com and front page of WSJ story by Katy Burne, profiling select institutional investors who are jumping in while retail investors jump ship, the yearn for yield remains a hotly-debated topic.

Swedroe says Nyet!: “Historically, the additional risk of high-yield bonds hasn’t been well-rewarded. And today, with credit spreads at historically low levels, the outlook doesn’t look promising. For the best risk-adjusted returns, investors are better off sticking with high-quality bonds.” Continue reading