Investors are looking to take advantage of the recent sell-off in the Russian stock market amid predictions the coronavirus impact will remain short-term.
According to data from Ultumus, the HSBC MSCI Russia Capped UCITS ETF (HRUD) saw inflows of $47.4m, in the week to 21 February, among the highest for ETFs listed in Europe, taking its total assets under management (AUM) to $206m.
The inflows come after a month-long sell-off in Russian equities amid concerns the coronavirus could have a long-term impact on Chinese markets, a nation Russia is closely tied to, and the price of oil.
Analysts have been concerned the outbreak could impact demand for oil. At the start of the year, Brent Crude was trading at $68 a barrel, however, it has dropped to lows of $53 a barrel on 10 February.
In a research note, Ned Davis Research warned the coronavirus is a “true black swan” event the oil and energy markets.
The RTS index of leading Russian stocks has fallen 7.4% since its year-to-date high of 1,647 points on 20 January. The energy sector accounts for 55.8% of the MSCI Russia index.
Russia has been one of the standout emerging markets over the past year with the MSCI Russian index delivering returns of 27.3% over the year to 31 January versus 1.72% for the wider MSCI Emerging Markets index.
Have you seen our new ETF data tool?
Just click on any of the ETF links in the article above and you will get access to a whole host of data including:
- Historical Performance
- Sector and country weights
- Portfolio analysis
- Similar ETFs