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.
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