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Van Eck Targets Russian Small Caps
April 15, 2011
SAN DIEGO (ETFguide.com) – Van Eck Global has just added the Market Vectors Russia Small-Cap ETF (NYSEArca: RSXJ) to its lineup. RSXJ focuses on small stocks in Russia and the fund’s holdings have an average market size of $2.3 billion.
“We are strong believers in Russia and many other emerging markets and think that large-cap exposure definitely has its place. However, we also believe the best way to gain pure-play exposure to a country’s domestic economy is through smaller companies that derive their revenue primarily from doing business locally,” said Ed Kuczma, Emerging Markets Analyst with Van Eck Global. “Other potential advantages with small caps generally include less political interference, relatively better corporate governance practices, and relatively better protection for minority shareholder interests.”
Russia’s economy has been boosted by strong commodity prices, with Gross Domestic Product (GDP) expected to expand by 4.3 percent in 2011.
Before RSXJ’s launch, U.S.-listed Russia ETFs had focused primarily on large-cap companies, like the Market Vectors Russia ETF (NYSEArca: RSX). Holdings in RSX have an average market capitalization of $20.3 billion.
As of April 13, 2011, RSXJ was comprised of 35 companies with the largest sector weightings being utilities (18 percent), materials (18 percent), and energy (17 percent).
RSXJ's annual expense ratio is 0.67%. |
