How to invest in Russia using ETFs

How do I invest in Russian stocks?

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

On the Russian stock market you find 5 indices, which are tracked by ETFs.

Alternatively, you can consider indices on Eastern Europe or emerging markets. In the indices on Eastern Europe, Russia is weighted strongly with a weight of almost 70%. In the emerging markets indices, the weight of Russia is significantly lower.

0.60% 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)

1 month: -6.28%
1 year: -20.62%
3 years: 19.96%
5 years: 103.19%

Indices in comparison

The best indices for ETFs on Russia

For an investment in the Russian stock market, there are 5 indices available which are tracked by 5 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 0.60% p.a. and 0.65% p.a..

Index Investment focus Number of ETFs Number of constituents Short description

MSCI Russia

Russia 1 ETF 22
(31/08/20)
The MSCI Russia index tracks the Russian equity market.
Index factsheet

MSCI Russia 25% Capped

Russia 1 ETF 22
(31/08/20)
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 22
(31/08/20)
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 17
(31/08/20)
The MSCI Russia IMI Select GDR tracks a broad selection of stocks or GDRs of Russian companies.
Index factsheet

Russian Depository

Russia 1 ETF 15
(29/11/19)
The Russian Depositary Index (RDX) tracks the most liquid depositary receipts on Russian shares traded on the London Stock Exchange.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI Russia ADR/GDR UCITS ETF (Acc)IE00B5V87390 144 0.65% p.a. Accumulating Ireland Full replication
HSBC MSCI Russia Capped UCITS ETF USDIE00B5LJZQ16 92 0.60% p.a. Distributing Ireland Full replication
Xtrackers MSCI Russia Capped Swap UCITS ETF 1CLU0322252502 70 0.65% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI Russia UCITS ETF - DistLU1923627332 17 0.65% p.a. Distributing Luxembourg Unfunded swap
Invesco RDX UCITS ETFIE00B5NDLN01 8 0.65% p.a. Distributing Ireland Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
Russian Depository 0.13% -7.95% -13.30% -19.69% 13.55%
MSCI Russia IMI Select GDR -0.48% -7.25% -12.83% -17.88% 19.33%
MSCI Russia -1.67% -7.83% -12.69% -17.67% 18.15%
MSCI Russia 25% Capped -1.58% -7.09% -10.36% -15.47% 19.01%
MSCI Russia Capped -0.13% -5.67% -8.90% -13.90% 22.61%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
Russian Depository -26.52% 43.60% 5.04% -4.92% 87.17%
MSCI Russia -26.25% 46.63% 3.44% -2.09% 86.37%
MSCI Russia IMI Select GDR -25.62% 44.54% 6.69% -3.03% 81.36%
MSCI Russia 25% Capped -24.19% 44.56% 5.39% -5.95% 83.95%
MSCI Russia Capped -22.30% 45.37% 4.86% -4.16% 48.24%

Source: justETF.com; As of 31/08/20; Calculations in GBP based on the largest ETF of the respective index.

 

The cheapest Russia ETFs
by total expense ratio (TER)

Show all

Eastern Europe indices with a share of Russia

Besides Russia ETFs you may consider indices on Eastern Europe. In total, you can invest in 1 Eastern Europe index, which is tracked by 1 ETF. With almost 70%, Russia is weighted strongly in the MSCI Emerging Markets Eastern Europe 10/40 index. The total expense ratio (TER) of ETFs on Eastern Europe is around 0.74% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
MSCI Emerging Markets Eastern Europe 10/40 Eastern Europe
Russia: 69.19%
(29/05/2020)
1 ETF 43
(31/08/20)
The MSCI Emerging Markets Eastern Europe 10/40 index tracks stocks from emerging Eastern European countries. The imbedded 10/40 rule limits the weight of a single company to 10% of the index. The sum of all companies with weights between 5% and 10% is limited to 40%.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI Eastern Europe Capped UCITS ETFIE00B0M63953 132 0.74% p.a. Distributing Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Emerging Markets Eastern Europe 10/40 -0.85% -3.68% -5.66% -14.98% 1.20%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI Emerging Markets Eastern Europe 10/40 -20.59% 25.69% 1.89% 6.53% 62.44%

Source: justETF.com; As of 31/08/20; Calculations in GBP based on the largest ETF of the respective index.

 

Emerging markets indices with a share of Russia

As second alternative to Eastern Europe you may consider indices on emerging markets. Currently, you can invest in 2 emerging markets indices, which are tracked by 2 ETFs. The total expense ratio (TER) of ETFs on emerging markets is between 0.65% p.a. and 0.74% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSE BRIC 50 Emerging Markets
Russia: 11.33%
(29/05/2020)
1 ETF 50
The FTSE BRIC 50 index tracks the 50 largest stocks of the BRIC countries (Brazil, Russia, India, China).
Index factsheet
MSCI Emerging Markets EMEA Emerging Markets
Russia: 26.77%
(29/05/2020)
1 ETF 157
(31/08/20)
The MSCI Emerging Markets EMEA index tracks large and mid cap companies from emerging markets in the EMEA region (Europe, Middle East and Africa).
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares BRIC 50 UCITS ETFIE00B1W57M07 183 0.74% p.a. Distributing Ireland Full replication
Xtrackers MSCI EM EMEA Swap UCITS ETF 1CLU0292109005 31 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 Emerging Markets EMEA -0.94% -0.94% -6.62% -18.17% -20.01%
FTSE BRIC 50 3.77% 11.07% 12.29% 14.23% 25.49%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI Emerging Markets EMEA -19.84% 10.59% -11.38% 12.58% 42.89%
FTSE BRIC 50 4.93% 18.98% -3.63% 23.98% 39.62%

Source: justETF.com; As of 31/08/20; Calculations in GBP based on the largest ETF of the respective index.