Russian ETF

Why, as someone new to investing, would you be looking to Russia?

eskbanker wrote: »

Perhaps this is what OP had in mind with the title of yesterday's thread?

https://forums.moneysavingexpert.com/showthread.php?t=5840627

Its the oldest trick in the book. Come on a forum and instill fear. Russian hackers read the thread and before you know it there is a 40% crash in Russian equities. Then buy a Russion ETF and make out like a bandit.

Hello henryandmay,

Reading between the lines (from your other post linked here) it seems you are choosing Russia because you are worried about things being overpriced, and you consider Russia may be under priced.

I invest in Russia. It!!!8217;s up 50% last year and 10% this year. With those numbers it could easily go down again. Russia is considered under priced if you respect cape ( cyclically adjusted price to earnings ratio) but as you have said you are a new investor, you may not have read up on that? https://www.starcapital.de/en/research/stock-market-valuation/

Russia appears to be more prone to market movement based on politics - think recent US sanctions and suggestions Russia is ready to go to war.

It would be bad investing to put all or even a lot into Russia, it makes up about 1% of the world market for a reference. I!!!8217;m 10% in now, which most would consider high. I have a lot of sensible investments but Russia and the weighting I have is probably the most perceived high risk out of everything I have. It certainly causes me the most grief with it!!!8217;s swings of ups and downs. I!!!8217;ve sold out entirely at times and have been lucky to make money doing this, but most would advise against !!!8220;timing the market!!!8221;. If you likely would have panicked and sold about a month ago when Russia fell about 10% in one day , then it!!!8217;s not for you.

Personally I have a core sensible more mainstream investment allocation and then some more higher risk investments. When people get into investing a lot of the newbies are not interested in the slow steady style and want the exciting big gains that often precede big losses. Something can!!!8217;t keep going up 65% every 2 years. There has to be a correction.

So, by all means put something into Russia if you have done your homework, but don!!!8217;t go in thinking it!!!8217;s lower risk than something like a sensible life strategy type product. There are different types of risk with all investments.

Best of luck whatever you end up doing. I found Tim hales !!!8220;smarter investing!!!8221; a good starting point.