Russian ETF Lures Cash as Bear Market Proves No Deterrent - Bloomberg:
"Foreigners are loading up on wagers that Russia’s stock-market rout is poised to reverse.
They’ve poured $608 million into a U.S.-based exchange-traded fund focused on Russian equities in the past two months, the most since 2011, even as the ETF plunged 6.9 percent during the period. The benchmark Micex Index, which is quoted in rubles, gained 2.3 percent in August and September, far from the bear market that the dollar-denominated RTS Index entered this week for the second time in 2014.
While the ETF bet hasn’t paid off so far, there are bullish signs luring investors: the conflict in Ukraine that has saddled Russia with sanctions is easing; stock valuations are near a five-year low; and the ruble, a key variable to the ETF’s performance, is now trading close to levels where the central bank has pledged to support it."
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