Russia actually ranks second overall behind South Korea (which probably shouldn’t be called an “emerging market” anymore), but overtook China for the first time since the firm started the rankings back in 2009. From Bloomberg:
“China remains in the top five on GDP growth but has lost ground in terms of private and public debt indicators, the current account and reserve adequacy,” David Hauner, a strategist at the bank, said in an e-mailed note. Russia’s “growth is poor, but current-account, fiscal and leverage indicators remain among the strongest.”
Russia’s rise is no doubt directly tied to the recovery in crude oil prices. Around 64% of the country’s exports involve oil and natural gas, according to Wikipedia. Meanwhile, Turkey and South Africa bring up the rear in the rankings, due to ongoing political and economic turmoil.
Here is BofAML’s full emerging market country rankings, along with their most popular ETFs:
- South Korea – EWY
- Russia – RSX, RSXJ
- China – FXI, MCHI
- India – INDA, EPI
- Indonesia – EIDO
- Poland – EPOL
- Mexico – EWW
- Brazil – EWZ
- Turkey – TUK
- South Africa – EZA
This news will no doubt be music to the ears of investors in the Market Vector Russia ETF Trust (NYSE:RSX) and Market Vectors ETF Trust (NYSE:RSXJ), both of which have had a stellar 2016. Both of these funds have ETF Daily News SMART Grades of B (Buy).