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 2 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.
Performance of Russian stocks (MSCI Russia Capped)
Indices in comparison
The best indices for ETFs on Russia
For an investment in the Russian stock market, there are 2 indices available which are tracked by 2 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 0.51% p.a. and 0.65% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
MSCI Russia Capped | Russia | 1 ETF | 10 (30/11/2022) |
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 (30/11/2022) |
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 | |
---|---|---|---|---|---|---|
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 Capped | - | - | - | - | - | |
MSCI Russia IMI Select GDR | - | - | - | - | - |
Index | 2023 in % |
2022 in % |
2021 in % |
2020 in % |
2019 in % |
|
---|---|---|---|---|---|---|
MSCI Russia Capped | - | -80.94% | 20.28% | -15.42% | 45.37% | |
MSCI Russia IMI Select GDR | - | -95.44% | 30.63% | -19.05% | 44.54% |
Source: justETF.com; As of 31/12/2022; Calculations in GBP based on the largest ETF of the respective index.
The best Russia ETFs
by 1 year return
Show all
The cheapest Russia ETFs
by total expense ratio (TER)
1 | HSBC MSCI Russia Capped UCITS ETF USD | 0.51% p.a. |
2 | Lyxor MSCI Russia UCITS ETF - Dist | 0.65% p.a. |