A trader works at the New York Stock Exchange on Feb. 25, 2022.
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Everyday investors may unknowingly have exposure to Russian stocks — but the good news is, those holdings likely represent a small part of their overall portfolios.
Investments linked to Russia have taken a nosedive in the days after the country’s Feb. 24 invasion of Ukraine, which has prompted the West to impose rounds of financial sanctions and other measures to cripple Russia’s economy.
Americans’ portfolios may touch Russia (and other countries) in many ways, perhaps via a mutual fund or exchange-traded fund.
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Some Russia-focused funds had steep selloffs on Monday. For example, the Van Eck Russia ETF (RSX) was down 30% as of 2:20 p.m. ET — on pace for its worst day since inception in 2007. The iShares MSCI Russia ETF (ERUS) was down 28%.
But many popular funds allocate to Russia as a sliver of a broader strategy, according to financial experts. These are largely emerging markets funds that invest in stocks and bonds of developing economies like China, India, Brazil and, of course, Russia.
For example, the Vanguard FTSE Emerging Markets Index Fund ETF (VWO) had a roughly 3% stake in Russia at the end of January, according to Todd Rosenbluth, director of mutual fund and ETF research…
