The Russian stock market is a great place for investing if you are looking for high returns. After the collapse of the Soviet Union, the Russian stock market took a hit and suffered from low investor interest. However, when oil prices increased the Russian stock market regained its strength. Today, it is one of the best performing emerging markets in the world and investors are flocking to it.
From Gazprom to Rosneft, Sberbank to Yandex, the Russian stocks carry a great potential of high returns. FinBrain Team has created this article to give you a better understanding about the Russian Stock Market, how to invest in and pick the best Russian Stocks. We are the world’s #1 AI driven stock prediction website that democratizes AI and Alternative data technologies for the traders and investors from all around the world. In this article, we will inform you about the dynamics of the Russian stock market.
The Russian government has taken several steps to ensure that the Russian stock market performs well by improving business environment. Russia has also joined international organizations like WTO (World Trade Organization) and MAI (Moscow Association of International Investing). The Russian exchange is also now part of global exchanges like NASDAQ and NYSE.
Trading in Russia is quite easy as it is similar to trading in other developed markets. It is also very transparent, thanks to various regulatory bodies that keep track of financial activities in the country. There are many brokers offering trading in Russia and most of them are very reliable and offer extensive research tools for their customers. Investing in Russia is quite easy and the returns can be very good for investors who are willing to take risks. The Russian stock market is also a great place for investors from other countries as it provides good opportunities to earn money.
How to Invest in Russian Stocks? What are the caveats?
Investing in Russian stocks is not a simple task. You have to be aware of current macroeconomic and political situation in Russia, as well as the peculiarities of its market.
The country has a solid economic base. However, investors are still concerned about the possibility of Western sanctions and political risks. In addition, there are also some companies that operate in Russia but are listed on foreign stock exchanges (for example Rosneft). So, how do you invest in Russia?
Investing in the Russian Stocks Directly
Investing directly in Russian stocks is one way. However, due to several reasons it may not be the best option. First of all, investing through a local broker involves high commissions, which can quickly eat up your profits. Secondly, it can be difficult for an individual investor to create an effective portfolio without taking additional risks. Thirdly, the Russian market is very illiquid and thus trading there can be quite costly. Finally, despite the fact that most Russian companies pay dividends regularly, they don’t have a particularly strong history of paying them out regularly (which is sometimes called “Russian roulette with dividends”). All these factors make investments in Russian direct stocks risky and unprofitable for many retail investors.
Investing in the Russian Stock Market through ETFs
If you want to invest in Russia without dealing with the hassle of opening an account with local brokers and getting familiar with their trading platforms or dealing with high commissions from international brokers who offer access to the Russian market (such as Interactive Brokers), then you should consider investing through ETFs. ETFs allow you to invest globally (and even globally-hedged) and trade using any broker platform at minimal costs! The most popular and reliable ETFs for this purpose are the following two products : RSX and ERUS. Both ETFs are listed on US exchanges and track their corresponding indexes accurately: they replicate their composition exactly by holding each company’s stock proportionally to their weight in the index.
At the end of the day, investing in Russia doesn’t have to be difficult, if you know where to look. If you have any doubts about investing in this country, then take the help of a good broker. After all, your money is at stake.
How to Pick the Best Russian Stocks to Invest in?
Picking the best stocks has always been the challenge. Reading the company reports, doing technical and chart analysis and looking at the indicators were the most preferred ways to pick the stocks. However, the times have changed and these methods have lost their edge. Best technical and fundamental analysts are now lagging behind the markets, and the reason is they are falling short on collecting, quantifying and analyzing the data and doing it at a scale.
Stock picking and stock prediction is also transforming in the age of computers where crawlers collect massive amounts of alternative data and AI algorithms quantify these datasets and extract meaningful results from them.
FinBrain Technologies have developed algorithms that collect and analyze traditional and alternative data for US&World stocks, ETFs, Futures, Foreign&Crypto currencies on a daily basis. Our tools and algorithms generated AI driven predictions for thousands of assets and help traders with taking better informed trades, as well as maximizing their profits and minimizing their risks.
FinBrain Team empowers the traders of the Russian stocks with the cutting edge AI algorithms and alternative data solutions. The predictions for more than 100 Russian stocks listed under MOEX exchange are now available on FinBrain Terminal. Our tools and datasets help thousands of traders and investors from 150+ countries around the world. Explore the AI driven stock predictions, daily technical reports and more on FinBrain Terminal today.