Market Vectors Russia Small-Cap ETF Launched (RSXJ)

This morning, Van Eck Global launched the Market Vectors Russia Small-Cap ETF

. Described by Van Eck Global as the first U.S.-based ETF “designed to give investors pure-play exposure to the developing local Russian economy as measured by the country's small-capitalization companies,” the Market Vectors Russia Small-Cap ETF has stock in Pharmstandard, LSR Group, O'Key Group, and AK Transneft, among many others. According to Van Eck Global, Russia is currently among the least expensive of the major emerging markets from a valuation perspective. As of March 2011, Russia's stock market price/earnings ratio is reportedly 6.6 times, which, according to measurements by the MSCI Emerging Markets Index, represents a significant discount versus emerging markets stocks. “We are strong believers in Russia and many other emerging markets and think that large-cap exposure definitely has its place,” said Ed Kuczma, Emerging Markets Analyst with Van Eck Global. “However, we also believe the best way to gain pure-play exposure to a country's domestic economy is through smaller companies that derive their revenue primarily from doing business locally.” “Other potential advantages with small caps generally include less political interference, relatively better corporate governance practices, and relatively better protection for minority shareholder interests,” Kuczma added.