Comparing Equity Market Performance: Russia vs. Other BRICs, US and UK

In the past 12 months, the Russian equity market has outperformed the markets of Brazil, India and China. In addition, the RTS Index has also outperformed the U.S. and UK markets.

From INVESTMENT EXTRA: A bull market for the Russian bear:

Robin Geffen, fund manager and chief executive of Neptune Investment Management notes the following two reasons for the excellent performance of Russian stocks:

  • The Russian economy has continued to recover strongly reducing unemployment, rising middle-class with increasing wages leading to higher consumption.
  • As a large net exporter of commodities, the benefit from the commodities Russia sells far outweigh any inflation in prices.

THE MSCI Index performance comparison for BRICs, the UK and US for 1-year and 5-year periods are shown below:

Source: MSCI

While the Russian market has performed better in the last one year, all other countries except the UK have outperformed Russia in the five-year period. The MSCI indices for Brazil, China and India have yielded much higher returns than Russia with Brazil leading the group.

Related EFTs:

iShares S&P India Nifty 50 (INDY)
iShares FTSE/Xinhua China 25 Index Fund (FXI)
Market Vectors Russia ETF (RSX)
iShares MSCI Brazil Index (EWZ)
iShares MSCI United Kingdom Index (EWU)

Disclosure: No Positions

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