Russian investment coming 21 days the first domestic ETF traded

[Korea goyounghun financial newspaper News] Korea's first ETF to invest in Russia (exchange traded funds) are traded on the securities market.

Korea Exchange said it will be listed on the securities market 21 days coming 'KINDEX Russia MSCI ETF (synthetic), the Korea Investment Trust Management.

Investing in a commodity market, representing 21 sports, including taking into account the flow of market capitalization listed on the Russian Stock Exchange (MOEX) multi-scale events that last January about 85% of the market capitalization based on the Russian stock exchange.

The ETF provides global diversification into the first domestic ETF and the Russian stock market investment opportunities to invest in Russia. Russia is an area of ​​interest of foreign investors in the oil prices rebounded, easing economic sanctions expectations, political stability and economic recovery.

Exchange side investor would be Hong Kong, and can reduce costs, more exchange fees if you invest in an ETF traded on FDI, based on index returns, as well as against ruble (RUB) worth of currency fluctuations are reflected in the yields Won (KRW) He said.

OTC derivatives can be based on the index performance and interoperability gap between the ETF and occur depending on the costs associated with the operation (swap). Therefore it is necessary to understand the exact nature of the investors on taxation and foreign exchange risk exposure, including unique product structure of the synthetic ETF.

Synthetic ETF operated via the OTC derivatives rather than real foreign stocks is not a special exemption applies. Russia and emerging markets currencies can lead to high exchange rate fluctuations by external influences compared to major currencies overseas investors must be careful. You can also occur when the gap chapter hedge nature intraday and end.



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