Bulletin
Investor Alert

New York Markets Close in:

ETF Investing Archives | Email alerts

April 9, 2018, 12:26 p.m. EDT

Russia ETFs on track for worst day since 2014 after sanctions, geopolitical tensions

Monday decline turns the funds lower for 2018

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    VanEck Vectors Russia ETF (RSX)
  • X
    iShares MSCI Russia ETF (ERUS)
  • X
    Russian Ruble (USDRUB)

or Cancel Already have a watchlist? Log In

By Ryan Vlastelica


Getty Images

Exchange-traded funds that track the Russian equity market tumbled on Monday and were on track for their biggest one-day drop in years.

The slump followed a new round of sanctions that were imposed on Russian entities and individuals, while tensions between Russia and the U.S. also escalated after a suspected chemical-weapons attack in Syria. President Donald Trump tweeted that Russia and its president, Vladimir Putin, were responsible for backing Syrian President Bashar al-Assad, and said there would be a “big price...to pay.”

The VanEck Vectors Russia ETF /zigman2/quotes/200464876/composite RSX -1.59%  tumbled 9.4%, on track for its worst session since December 2014. The fund traded on volume of nearly 20 million shares, well above its 30-day average of 8 million. Another fund, the iShares MSCI Russia ETF /zigman2/quotes/206979425/composite ERUS -2.33% , sank 10.6% and was also on pace for its biggest decline since December 2014.

The U.S. dollar jumped 3.6% against the Russian ruble /zigman2/quotes/210561862/realtime/sampled USDRUB +0.2016% , which dropped to its lowest level since August.

Related: 4 reasons ruble bulls are optimistic about Russia’s currency

The decline was enough to turn both ETFs lower for the year; the VanEck fund is down 4.3% in 2018 while the iShares fund is off 4.6%. The S&P 500 /zigman2/quotes/210599714/realtime SPX +0.16% is down 1% year to date while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.07%  is off 1.7%.

/zigman2/quotes/200464876/composite
US : U.S.: Cboe BZX
$ 21.09
-0.34 -1.59%
Volume: 4.49M
July 13, 2020 3:18p
loading...
/zigman2/quotes/206979425/composite
US : U.S.: NYSE Arca
$ 33.92
-0.81 -2.33%
Volume: 131,330
July 13, 2020 3:16p
loading...
/zigman2/quotes/210561862/realtime/sampled
US : Tullett Prebon
70.8751
+0.1426 +0.2016%
Volume: 0.0000
July 13, 2020 3:18p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,190.07
+5.03 +0.16%
Volume: 1.86B
July 13, 2020 3:18p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
26,354.17
+278.87 +1.07%
Volume: 300.11M
July 13, 2020 3:18p
loading...

Ryan Vlastelica is a markets reporter for MarketWatch and is based in New York. Follow him on Twitter @RyanVlastelica.

This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.