Four ETFs Impacted By Russia’s World Cup Victory

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 (RSX), the SPDR S&P Russia (RBL), the iShares MSCI Russia Capped Index (ERUS) and the SPDR S&P BRIC 40 (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 (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 (RBL), which allocates nearly 46.8% of its assets to energy and 17.7% to materials.
  • iShares MSCI Russia Capped Index (ERUS), which allocates nearly 51.6% of its assets to energy and 17.9% to materials.
  • SPDR S&P BRIC 40 (BIK), which allocates nearly 21.3% of its assets to Russia and boasts Russian energy giant Gazprom as its top holding.

Disclosure: No Positions

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