For Immediate Release
Chicago, IL – March 1, 2022 – Today, Zacks Investment Ideas feature highlights The Russia Equity ETF .
Global Investing: A Closer Look at the Russian Debacle
The geopolitical event that is taking place in Russia serves as a stark reminder of the risks we must account for in the investing world. One of the risks of international investing is what is known as country risk, or the risk arising from uncertainty associated with investing in a particular country.
This is a more general term and can include various components such as economic and political instability, limited liquidity, and other events that adversely impact a country's business and trade environment.
Substantial volatility involving severe fluctuations in exchange rates is also a grave concern. The Russian Ruble, for example, is crashing to new all-time lows and has lost over 70% of its value versus the U.S. dollar since its peak in 2008.
The recent international response to the Russia-Ukraine conflict in terms of sanctions and banking restrictions has been fast and furious and is contributing to a run on the Russian stock market. The Russia Equity ETF has tumbled over 60% from its peak this past November and is currently down nearly 25% just today.
Investors that hold a diversified portfolio with an international equity allocation may have some exposure to RSX or a similar Russian ETF. As we zoom out, we find that there really hasn't been much benefit to owning Russian equities over the past 15 years, whereas U.S. investors have been rewarded.
Russia has been considered a foreign developed nation, but the country is somewhat in transition. Poverty is widespread and the standard of living is relatively low. As is characteristic of a non-developed nation, the exportation of natural resources fuels much of Russia's economy.
Typically, investors with an international allocation have exposure to both foreign developed and foreign emerging markets. Both foreign developed and emerging markets have vastly underperformed the U.S. over the last decade.
It's far too early to tell if these bullish trends will continue. Emerging market ETFs have experienced short periods of outperformance over the past decade, only to continue the overall underperformance trend as a whole. Generally speaking, valuations for most emerging markets are relatively attractive. We can see above that Brazil has led the way this year, while the Russia Equity ETF has plummeted.
Investing both domestically and internationally carries risks and it's vital that investors understand the inherent hazards before taking positions. Risk management is paramount in today's climate to reduce the probability of undesirable outcomes. The situation with Russia serves as yet another example that investors need to keep a close eye on global events and their implications from an investment standpoint.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys
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Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: The Russia Equity ETF
For Immediate Release
Chicago, IL – March 1, 2022 – Today, Zacks Investment Ideas feature highlights The Russia Equity ETF .
Global Investing: A Closer Look at the Russian Debacle
The geopolitical event that is taking place in Russia serves as a stark reminder of the risks we must account for in the investing world. One of the risks of international investing is what is known as country risk, or the risk arising from uncertainty associated with investing in a particular country.
This is a more general term and can include various components such as economic and political instability, limited liquidity, and other events that adversely impact a country's business and trade environment.
Substantial volatility involving severe fluctuations in exchange rates is also a grave concern. The Russian Ruble, for example, is crashing to new all-time lows and has lost over 70% of its value versus the U.S. dollar since its peak in 2008.
The recent international response to the Russia-Ukraine conflict in terms of sanctions and banking restrictions has been fast and furious and is contributing to a run on the Russian stock market. The Russia Equity ETF has tumbled over 60% from its peak this past November and is currently down nearly 25% just today.
Investors that hold a diversified portfolio with an international equity allocation may have some exposure to RSX or a similar Russian ETF. As we zoom out, we find that there really hasn't been much benefit to owning Russian equities over the past 15 years, whereas U.S. investors have been rewarded.
Russia has been considered a foreign developed nation, but the country is somewhat in transition. Poverty is widespread and the standard of living is relatively low. As is characteristic of a non-developed nation, the exportation of natural resources fuels much of Russia's economy.
Typically, investors with an international allocation have exposure to both foreign developed and foreign emerging markets. Both foreign developed and emerging markets have vastly underperformed the U.S. over the last decade.
It's far too early to tell if these bullish trends will continue. Emerging market ETFs have experienced short periods of outperformance over the past decade, only to continue the overall underperformance trend as a whole. Generally speaking, valuations for most emerging markets are relatively attractive. We can see above that Brazil has led the way this year, while the Russia Equity ETF has plummeted.
Investing both domestically and internationally carries risks and it's vital that investors understand the inherent hazards before taking positions. Risk management is paramount in today's climate to reduce the probability of undesirable outcomes. The situation with Russia serves as yet another example that investors need to keep a close eye on global events and their implications from an investment standpoint.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.