The ETF representing Russia's stock market experiences a 19% decline in value following the invasion of Ukraine.
On Thursday, Russia's invasion of Ukraine caused the stock to fall 19%, further depreciating its already low value.
The fund had a 28% decline year to date before Thursday's sharp decline, marking its fifth consecutive negative session. This decline came under pressure as tensions escalated on the border between the two countries. The fund's lowest point was a 23% decline on Thursday.
An ETF that tracks the MVIS Russia Index provides investors with exposure to a broad basket of Russian stocks through a single purchase.
While the ETF offers exposure to the Russian economy, it does not necessarily reflect the entirety of the country's stock market, as stated in a report from FactSet.
The fund is not necessarily similar to the broad Russian equity space, as it tends to be less concentrated and has a more diversified portfolio.
As of Wednesday, VanEck reported that the fund's top holdings include Gazprom, Norilsk Nickel, and Sberbank, with a net asset value of $1.2 billion.
On Thursday afternoon, President Biden declared increased penalties against Russia, affecting their banking industry.
The ETF, which has roughly $2 billion in net assets, fell 2% on Thursday, along with other ETFs representing other parts of the European market that were also under pressure.
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