The fund was the only one among 45 single-nation ETFs to trade lower this year
Single-country equity ETFs have generally done well this year — not surprising given the generally positive trend in the global equity market. But amidst the ETFs’ overall brilliant performance, one country has sounded a sour note.
In a survey of 45 single-country ETFs, Russia was the only one to post a negative return so far this year, reported MarketWatch. The rest of the countries surveyed have traded higher, with around 20 countries gaining by 20% on the year.
Except for Russia, “every country ETF in the world is positive in 2017 with an average return of 19%,” said Charlie Bilello, director of research at Pension Partners LLC. Based on data Bilello gathered, Russia is down 8.6%.
The Russian economy’s tight correlation to the price of oil, which has plunged by more than 14%, is a major factor. Other political events, including recent allegations of Russian communications with US President Donald Trump’s campaign before the election last year, may have also dragged the region down.
European countries were among the best performers, with Poland taking first place through the 42.3% gained so far this year by the VanEck Vectors Poland ETF. Greece, represented by the Global X MSCI Greece ETF, has gone up around 38%. These were likely supported by broadly improving economic conditions in the Eurozone, along with a bond rating upgrade bestowed upon Greece by Moody’s last month.
The US, based on the SPDR S&P 500 ETF Trust, advanced around 11%. Canada was not represented in the sample of single-country ETFs.
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In a survey of 45 single-country ETFs, Russia was the only one to post a negative return so far this year, reported MarketWatch. The rest of the countries surveyed have traded higher, with around 20 countries gaining by 20% on the year.
Except for Russia, “every country ETF in the world is positive in 2017 with an average return of 19%,” said Charlie Bilello, director of research at Pension Partners LLC. Based on data Bilello gathered, Russia is down 8.6%.
The Russian economy’s tight correlation to the price of oil, which has plunged by more than 14%, is a major factor. Other political events, including recent allegations of Russian communications with US President Donald Trump’s campaign before the election last year, may have also dragged the region down.
European countries were among the best performers, with Poland taking first place through the 42.3% gained so far this year by the VanEck Vectors Poland ETF. Greece, represented by the Global X MSCI Greece ETF, has gone up around 38%. These were likely supported by broadly improving economic conditions in the Eurozone, along with a bond rating upgrade bestowed upon Greece by Moody’s last month.
The US, based on the SPDR S&P 500 ETF Trust, advanced around 11%. Canada was not represented in the sample of single-country ETFs.
For more of Wealth Professional's latest industry news, click here.
