Many exchange-traded funds (ETFs) trade on the Moscow Exchange, offering an accessible entry point for beginner investors. Today we examine ETF FXRL — a dollar-denominated ETF that provides diversified exposure to leading Russian equities with a relatively small initial investment.
ETF FXRL Overview
This ETF tracks the RTS Index, giving investors broad exposure to Russia’s largest publicly traded companies. The top holdings in FXRL are:
- Sberbank (15.342%)
- Gazprom (12.325%)
- Lukoil (10.781%)
- Yandex (8.632%)
- Norilsk Nickel (7.669%)
- Novatek (5.069%)
- Rosneft (3.384%)
- Polyus (2.643%)
- Magnit (2.348%)
- Tatneft (2.32%)
In addition to blue-chip stocks, FXRL includes less liquid names such as PIK Group, MKB Bank, and Petropavlovsk.
By sector allocation, energy dominates at 45%, commodities account for 20%, and financials make up 18% of the fund’s assets.
Why Choose FXRL?
New investors often start with limited capital — insufficient to build a well-diversified portfolio of individual Russian stocks. For example, one share of Polyus trades above ₽14,000; Norilsk Nickel exceeds ₽22,000.
By contrast, a single FXRL share trades on the Moscow Exchange for just over ₽3,500 — granting instant exposure to all these companies in one transaction.
Another key feature: since the RTS Index is calculated in US dollars, FXRL’s base currency is USD. This means investors automatically gain exposure to ruble depreciation — effectively hedging against RUB weakness.
FAQ
What index does FXRL track?
FXRL tracks the RTS Index, a dollar-denominated benchmark of Russia’s largest listed companies.
Is FXRL suitable for beginner investors?
Yes — it offers instant diversification across major Russian equities with a single share purchase (~₽3,500), avoiding high per-stock entry costs.
Does FXRL hedge against ruble depreciation?
Yes — because its NAV is calculated in USD, FXRL provides natural protection against RUB weakening relative to the dollar.
