Russia Bond

Russia bond mutual funds and ETFs invest the majority of their assets... Russia bond mutual funds and ETFs invest the majority of their assets in Russian government and corporate debt. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in the Ruble. Depending on their mandate, a Russia Bond Mutual Fund or ETF may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. As of 2024, IMF data shows that the nonfinancial corporate sector is the largest issuer of debt in Russia, at 72% of GDP. Government debt, meanwhile, represents 20% of GDP. Investors purchase these securities to get both capital growth and income. The risk of each fund will vary, in part due to the duration of the bonds they own, as well as the credit quality of the issuer. Note that due to sanctions stemming from Russia’s invasion of Ukraine, western investors are effectively prohibited currently from buying these funds. Last Updated: 12/24/2024 View more View less

Russia bond mutual funds and ETFs invest the majority of their assets in Russian government and corporate debt. These funds can be actively or passively managed and may seek to track or outperform... Russia bond mutual funds and ETFs invest the majority of their assets in Russian government and corporate debt. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in the Ruble. Depending on their mandate, a Russia Bond Mutual Fund or ETF may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. As of 2024, IMF data shows that the nonfinancial corporate sector is the largest issuer of debt in Russia, at 72% of GDP. Government debt, meanwhile, represents 20% of GDP. Investors purchase these securities to get both capital growth and income. The risk of each fund will vary, in part due to the duration of the bonds they own, as well as the credit quality of the issuer. Note that due to sanctions stemming from Russia’s invasion of Ukraine, western investors are effectively prohibited currently from buying these funds. Last Updated: 12/24/2024 View more View less