Russian ETFs: Crashing prices, halted trading, de-listings. What’s next?

Russian change traded funds discovered themselves in full freefall all week because the Ukraine invasion amplified market tensions every passing day. Russian ETFs not solely crumbled to new buying and selling lows however there was additionally halted buying and selling and de-listings that passed off as market volatility ratcheted up. The (VIX) topped out at 35.2 on Tuesday and ended Friday above 31.

All the ETFs that monitor the Russian market plunged properly into destructive territory, and it was led by the leveraged Direxion Day by day Russia Bull 2X Shares (NYSEARCA:RUSL), which closed -77.3% for the week.

Furthermore, the iShares MSCI Russia Capped ETF (NYSEARCA:ERUS) dropped 68.1% on the week, whereas the VanEck Russia ETF (BATS:RSX) concluded -61.4%, Franklin FTSE Russia ETF (NYSEARCA:FLRU) was -55.2%, and the VanEck Russia Small-Cap ETF (BATS:RSXJ) rounded out -52.7% for the week.

Halted Buying and selling: Not solely did the above funds crater to the draw back however there have been additionally commerce halts that passed off on the week to assist defend buyers from additional slides.

Each ERUS and FLRU had been suspended on Friday because the New York Inventory Change stopped them from buying and selling. BlackRock and Franklin Templeton, the issuers of the above funds, supported the transfer as they continue to be dedicated to defending the very best pursuits of their shareholders.

Except for ETFs, the Moscow Change was additionally shut down from buying and selling on the week because it tried to defend shares from a brutal selloff.

De-listing: The turmoil in Russian ETF buying and selling additionally led to the de-listing of RUSL. Direxion Funds acknowledged that RUSL will stop buying and selling on the NYSE Arca as of the shut of standard buying and selling on March 11, 2022, and can liquidate on March 18, 2022.

Value Motion Since Invasion (Feb.23 shut): RSX -68.5%, RSXJ -58.8%, RUSL -80.3%, FLRU -57.4%, and ERUS -72.5%.

What’s Subsequent: It seems that there is no such thing as a finish in sight for these ETFs as a race to the underside appears to be like inevitable except a ceasefire takes place. Dip shopping for nonetheless, is defiantly within the playing cards for some, however that comes with an incredible degree of threat as these ETFs are falling at a fast tempo and may shortly turn out to be eradicated.

Moreover, the Russian navy doesn’t look like easing up anytime quickly. They’ve captured a handful of key cities and proceed the relentless barrage of bombings on Ukraine.

To raised perceive RSX, RSXJ, ERUS, FLRU, and RUSL, take a look at In search of Alpha’s quantitative and basic evaluation of every particular fund.