Russia Loses Its Edge as Oil Drop Spurs Worst ETF Flows in Year - Bloomberg

Russia Loses Its Edge as Oil Drop Spurs Worst ETF Flows in Year - Bloomberg:

"Sliding oil prices are eroding the buffers that helped Russia withstand the emerging-market retreat.


Investors are pulling cash from the biggest exchange-traded fund tracking Russian assets at the fastest pace in almost a year. Redemptions from the VanEck Vectors Russia ETF, which invests in oil and gas companies including Gazprom PJSC, Rosneft PJSC and Lukoil PJSC, reached $88.9 million last week, the strongest since June 2017, according to data compiled by Bloomberg.

 “There is a global outflow from emerging markets -- Russia isn’t an exception from the trend, but recently its market was supported by higher oil prices,” said Vadim Bit-Avragim, a money manager at Kapital Asset Management LLC in Moscow. “Now the factor of high crude price is diminishing.”

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