The VanEck Russia ETF dropped sharply on Thursday as Russian forces moved deeper into Ukraine.
The fund was down more than 28% year to date before Thursday's sharp decline. This would be the fifth-straight negative session for the fund, which came under pressure late last week as tensions increased on the border between the two countries.
Exchange traded funds represent a basket of equities, allowing investors to get exposure to a broad basket or sector of stocks with one purchase. This ETF is designed to track, meaning that it holds stocks of Russian companies or those who generated at least half of their revenue from the country. Though the ETF gives investors exposure to the Russian economy, it is not necessarily a perfect representative of the country's stock market, according to a report about the fund from FactSet.
"The fund, however, doesn't necessary look like the broad Russian equity space. It tends to be less top-heavy, as it limits its exposure to giant energy firms. This approach produces a more diverse basket that's still highly concentrated," the report said. The fund's top holdings include Gazprom, the partially state-owned energy company, mining company Norilsk Nickel and Sberbank. The fund had $1.2 billion in net assets as of Wednesday, according to VanEck., which has roughly $2 billion in net assets, was down as much as 4% in premarket trading.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Russia-Ukraine updates: Russia claims it neutralized Ukraine military infrastructure“We condemn in the strongest possible terms Russia’s unprecedented military aggression against Ukraine,” European Council Pres. Charles Michel and European Commission Pres. Ursula von der Leyen say in a joint statement.
Read more »
Russia-Ukraine Live Updates: Putin announces military operation in UkraineThe U.S. announced a new round of sanctions against Russia Tuesday as Russia evacuates its embassy in Kyiv and Ukraine declares a state of emergency.
Read more »
Russia-Ukraine updates: Putin announces military operation in UkraineRussian President Vladimir Putin announced early Thursday local time that military operations had begun in Ukraine, kicking off a long-feared attack on their European neighbor. LIVE UPDATES:
Read more »
Russia-Ukraine: What to know as explosions boom over UkraineHere are the things to know about the conflict over Ukraine and the security crisis in Eastern Europe.
Read more »
Ukraine-Russia live updates: Troops enter Ukraine from Belarus, reports sayLIVE UPDATES: CNN and the BBC are reporting that Russian troops have entered Ukraine from neighboring Belarus.
Read more »
Russia-Ukraine Live Updates: Ukraine says U.S. promised defense weaponsPresident Joe Biden announced a new round of sanctions against Russia Tuesday. Follow Newsweek's liveblog for the latest.
Read more »