Investing in Russia With Mutual Funds and ETFs

Why Invest in Russia and How to Do it

russia
Learn how to invest in Russia with mutual funds. Getty Images

Why invest in Russia? What are some of the best mutual funds and ETFs offering broad exposure to the Russian market economy?

The Russian Economy

Before you decide to invest in Russia, you are wise to learn a few things about the Russian economy. As a top 10 world economy, you may not be quick to label it as an "emerging" economy as it is often categorized in the investing universe. Rich in natural resources and energy, the industries and sub-sectors include precious metals, timber, oil, and natural gas.

Commodities are a big driver of growth for the Russian economy.

Since the end of the Soviet Union era, Russia's economy has adapted more of a capitalist structure and has become more market-friendly and globally integrated. This reduces some of the geo-political market risk that was much more present for investors as recently as the late 1990's.

Best Funds For Investing in Russia

Most emerging markets funds offer exposure to Russia but you can get greater exposure with a good index fund or ETF. There are very few mutual funds that focus only on Russia but the most widely traded fund without paying a load is is ING Russia Load-Waived (LETRX.LW). For most investors, a broadly diversified index is wise and the best way to invest passively in Russia is with an ETF, such as Market Vectors Russia ETF (RSX) and SPDR S&P Russia ETF (RBL).

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice.

Under no circumstances does this information represent a recommendation to buy or sell securities.