Foreign Investors Shun ‘Boring’ Russian Stocks as ETFs Shrink
- Traders cashing out of ETFs after adding $442 million in 2015
- Russian equities are third-best performers worldwide this year
An illuminated neon electronic sign displaying a US dollar symbol hangs outside a foreign exchange bureau in Moscow, Russia, on Thursday, Dec. 11, 2014. The ruble tumbled to a record for a second day, spurring speculation Russia's central bank intervened to stem the rout, and bonds slid as weaker oil prices worsen the outlook for an economy verging on recession.
Photographer: Alexander Zemlianichenko Jr/BloombergRussian stocks are posting some of the best returns in the world this year. And foreign investors just don’t seem all that interested.
Traders have pulled more than $448 million from Russia-focused exchange-traded funds in 2016, data compiled by Bloomberg show. Only ETFs investing in China and Taiwan have had bigger outflows in emerging markets. Investors added about $442 million into Russia-dedicated funds in 2015 even as the nation’s stocks dropped for the third year in a row.