4 ETFs Impacted By Russia’s World Cup Victory (RSX, RBL, ERUS, BIK)

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December 2, 2010 2:43pm NYSE:BIK NYSE:ERUS

Russia recently won the right to host the 2018 World Cup, one of the world’s largest sporting events, which is expected to boost the nation’s economy and provide positive price support to the

 Market Vectors Russia ETF (NYSE:RSX), the SPDR S&P Russia (NYSE:RBL), the iShares MSCI Russia Capped Index (NYSE:ERUS) and the SPDR S&P BRIC 40 (NYSE:BIK).

In preparation for the event, Russia is expected to significantly ramp up infrastructure spending over the next few years.  It is expected that the Kremlin will construct 13 new stadiums and renovate three existing ones to host matches.  Furthermore, the emerging nation is committed to improve and upgrade its airports and other transportation arteries, like roadways, to accommodate increased capacity and usage. 

In and of itself, these improvements in infrastructure are expected to be significant and companies who are both directly and indirectly influenced by increased infrastructure spending are likely to reap the benefits.  As mentioned above, three ETFs influenced by this sporting victory include:

  • Market Vectors Russia ETF (NYSE:RSX), which allocates nearly 39% of its assets to energy and 14% to industrials, two sectors that are highly driven by increased infrastructure spending.
  • SPDR S&P Russia (NYSE:RBL), which allocates nearly 46.8% of its assets to energy and 17.7% to materials.
  • iShares MSCI Russia Capped Index (NYSE:ERUS), which allocates nearly 51.6% of its assets to energy and 17.9% to materials.
  • SPDR S&P BRIC 40 (NYSE:BIK), which allocates nearly 21.3% of its assets to Russia and boasts Russian energy giant Gazprom as its top holding.

Written By Kevin Grewal From ETF Tutor  Disclosure: No Positions 

Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at www.SmartStops.net, where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor’s degree from the University of California along with a MBA from the California State University, Fullerton. He is a contributing author on The Street – his articles can also be found published on various sites including Yahoo! Finance, The Globe and Mail , Daily Markets, MSN Money, Seeking Alpha, Fidelity Investments, Traders Library, and Minyanville.

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