Van Eck Global is planning to launch an exchange-traded fund tied to Russia, where the economy surged 6% last year on the strength of rising energy prices and consumer spending, TASS News Agency reports.

Called the Market Vectors Russia ETF, it will invest in securities of Russian companies that trade on international securities, with about 50% of its holdings concentrated on energy.

But John Connor, portfolio manager of the Third Millennium Russia Fund, an actively managed fund, warns that funds that invest in Russia can rise or fall 30% or more in a year. “You have to have a strong stomach to be in emerging markets,” he warns.

Van Eck is also planning a related ETF that will invest in alternative energy.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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