If the country can return to growth soon, it’ll mark the end of its longest recession in over 20 years. From Bloomberg:
Gross domestic product contracted 0.2 percent last year after an upwardly revised decline of 2.8 percent in 2015, the Federal Statistics Service said on Wednesday. That result, the first reading for 2016, beat every forecast in a Bloomberg survey of 15 analysts, whose median estimate was for a 0.5 percent drop. The Economy Ministry had projected a decrease of 0.6 percent.
Some analysts believe that upcoming Q4 numbers will mark an end to the economic contraction, which would mean the recession is actually already over. Russian stocks have gotten ahead of the news already, with the benchmark MICEX index surging 25% over the past year, more than doubling the S&P 500’s return in that timeframe.
On the ETF side of things today, the VanEck Vectors Russia ETF (NYSE:RSX) was trading at $21.42 per share on Wednesday morning, up $0.04 (+0.19%). Year-to-date, RSX has gained 0.94%, versus a 1.95% rise in the benchmark S&P 500 index during the same period.
Meanwhile, the VanEck Vectors Russia Small-Cap ETF (NYSE:RSXJ) was trading at $40.79 per share on Wednesday morning, down $0.01 (-0.02%). Year-to-date, RSXJ has gained 7.09%. RSXJ currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #30 of 77 ETFs in the Emerging Markets Equities ETFs category.