Another Possible Shakeup In An Emerging Markets ETF (RSX)
Yesterday, the ETF Professor told you about a possible shakeup in the Market Vectors Brazil Small-Cap ETF (NYSE: BRF) due to some M&A rumors. Now an IPO could have a similar impact on the Market Vectors Russia ETF (NYSE: RSX), one of the top performing ETFs in 2009.
An IPO by Russia's aluminum giant UC Rusal is planned for December and if the shares perform well, the stock could very well be added to the index that RSX tracks.
Normally, this wouldn't be a big deal, but RSX holds about half of its assets in oil and gas stocks and another 17% in metals and materials issues, so while Rusal would diversify RSX's commodities exposure, it would likely increase sector which is already substantial in this volatile ETF.
The Professor continues to continues to like RSX, but if it breaks below $30, that could be a bearish sign.
