Russia ETF: Not for the Weak of Heart

Investors will now have a way of reaching the emerging market of Russia via a Van Eck ETF. This will be the first ETF that aims at Russia alone. [Update: the new Russia ETF from Van Eck Global (RSX) launched recently.] The Russian economy has been boosted by high energy prices and rising consumer spending. It expanded more than 6% in 2006.

Despite attracting attention from international investors, Russian stocks aren't necessarily expensive, says Ian Salisbury of The Wall Street Journal.. The proposed Van Eck ETF is not for the weak of heart, considering the extreme volatility in emerging markets. The Templeton Russian and Eastern European (TRF) closed-end fund chart below highlights a 46% decline early last year. Our thoughts are very positive about this ETF, but be sure to have a stop-loss in place if you're going on vacation.

Editor: The Russia ETF is included in our listing of Single Country Emerging Markets ETFs and Closed-End Funds.

TRF 1-yr chart: