Ukraine Shrugged Off as Russia ETF Swells to Record - Bloomberg

Ukraine Shrugged Off as Russia ETF Swells to Record - Bloomberg:



"As oil fell into a bear market, the ruble traded at record lows and NATO said President Vladimir Putin is stoking conflict in Ukraine, bets on the biggest exchange-traded fund tracking Russian stocks surged to a record.



Demand for shares in the Market Vectors Russia ETF has held up as investors look beyond the Ukraine conflict and position themselves for a rebound in stocks trading at the cheapest valuations in emerging markets. Investors began piling in about four months ago amid signs the crisis was moving toward a resolution, easing concern that the U.S. and its allies, who say Russia’s helping rebels in the former Soviet republic, may toughen sanctions that have pushed the economy toward a recession.



“The decline in oil and a plunge in the ruble can’t be permanent, and at a time when U.S. stocks are at a record high, investors are getting interested in cheap Russian assets,” Sergei Pigarev, an analyst at Rye, Man & Gor Securities in Moscow, said by e-mail on Nov. 21. “There is a chance of double dipping: investors may cash in on the gains in the Russian market and get additional profit when the ruble strengthens.”"



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