It was nearly a decade ago that Russia was crowned as the R in
BRIC. Since then the economy has been through its share of ups and
downs, and analysts think that there might be more ups to come for
the Russia exchange traded fund (
Experts predict that Russia's economy will expand by 4.8% in
2010 and 4% in 2011, after shrinking by 8% in 2009. Russia's bout
with inflation seems over, and the resources available in the
country are plentiful.
Russia is benefiting from its heavy reliance on oil, too.
Martin Hutchinson for Money Morning reports that
with oil at a range of $70 to $80 per barrel, the flow of resources
into Russia is sufficient even for the public sector. And the
economy is open enough that business can survive and flourish,
which sets it apart from other oil-rich countries these days. [
Are BRIC ETFs Out And CIVETS In?
But there might be costs to the economy as a result of recent
Natalia Vasiklyeva for Bloomberg BusinessWeek
the drought and fires that hit Russia this summer will lower
economic growth by at least 0.8% and are already driving prices for
food staples like bread higher. Russia is not allowing any wheat
exports this year, which hiked wheat prices on global markets and
spurred domestic prices. [
How The Drought May Affect Russia's ETFs.
There are two single-country ETFs to access Russia's economy;
you can research them further by clicking on the ticker or by
Market Vectors Russia (NYSEArca: RSX)
SPDR S&P Russia ETF (NYSEArca: RBL)
Tisha Guerrero contributed to this article.