How to invest in Russia using ETFs

How do I invest in Russian stocks?

The easiest way to invest in Russian stocks is to invest in a broad market index. This can be done at low cost by using ETFs.

On Russian stocks you'll find 3 indices which are tracked by ETFs.

  • Important when investing in ETFs containing Russian equities: In response to the sanctions, the Russian Central Bank is banning foreign persons from selling Russian securities. ETFs that track indices on Russia are no longer tradable and investable. Furthermore, the major index providers MSCI, FTSE and S&P/Dow Jones have removed Russian shares from their emerging market indices. This will also affect corresponding ETFs and their composition.
0.00% p.a. - 0.65% p.a.
annual total expense ratio (TER) of Russia ETFs
on the Russian stock market, which are tracked by ETFs
on the Russian stock market
 
The best indices for Russia ETFs

Performance of Russian stocks (MSCI Russia Capped)

1 month: -
1 year: -83.99%
3 years: -82.13%
5 years: -72.29%

Indices in comparison

The best indices for ETFs on Russia

For an investment in the Russian stock market, there are 3 indices available which are tracked by 3 ETFs. Among the available indices there are number of capped indices. These indices limit the maximum weight of one constituent in the index in order to improve the diversification. The total expense ratio (TER) of ETFs on these indices is between 0.00% p.a. and 0.65% p.a..

Index Investment focus Number of ETFs Number of constituents Short description
MSCI Russia 25% Capped Russia 1 ETF 26
(31/03/2022)
The MSCI Russia 25% Capped index tracks the Russian equity market. Constituents whose weights are greater than 25% are capped daily to 22.5% and quarterly to 20%.
Index factsheet
MSCI Russia Capped Russia 1 ETF 26
(31/03/2022)
The MSCI Russia Capped index tracks the Russian equity market. The largest constituent is capped at 30% while the weight of any other constituent is capped at 20% (reviewed quarterly or if 35% is reached).
Index factsheet
MSCI Russia IMI Select GDR Russia 1 ETF 19
(31/03/2022)
The MSCI Russia IMI Select GDR tracks a broad selection of stocks or GDRs of Russian companies.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
Xtrackers MSCI Russia Capped Swap UCITS ETF 1CLU0322252502 51 0.00% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI Russia Capped UCITS ETF USDIE00B5LJZQ16 50 0.51% p.a. Accumulating Ireland Full replication
Lyxor MSCI Russia UCITS ETF - DistLU1923627332 1 0.65% p.a. Accumulating Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Russia IMI Select GDR - - -96.04% -96.08% -95.91%
MSCI Russia Capped - - -82.60% -83.51% -82.93%
MSCI Russia 25% Capped - - -75.84% -77.11% -76.51%
Index   2022
in %
2021
in %
2020
in %
2019
in %
2018
in %
MSCI Russia IMI Select GDR -96.33% 30.63% -19.05% 44.54% 6.69%
MSCI Russia Capped -84.07% 20.28% -15.42% 45.37% 4.86%
MSCI Russia 25% Capped -77.86% 19.76% -15.96% 44.56% 5.39%

Source: justETF.com; As of 31/07/2022; Calculations in GBP based on the largest ETF of the respective index.