I’ve been thinking about buying a commodities heavy Russian ETF like ERUS this coming week. The valuations for Russian companies are already pretty low and after this crash and the likely coming further drop with the sanctioning of the central bank and the SWIFT issue I was thinking it might be a good opportunity, esp considering how we’re likely generally going into a commodities boom.
Thoughts? Aside from the obvious geopolitical risk (which I believe is overblown because the world economy literally cannot function without Russian commodities at the moment and we’ll find out in the next few months the sanctions actually aren’t as hard as we are being told) I’m trying to think of possible negatives. For example delisting: for me this doesn’t seem like a big threat for something like ERUS because it seems to hold the companies on the Russian exchanges and not as ADRs but I haven’t been able to find much on it.
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