How to buy russian stocks

How To Invest in Russian Stocks

ETFs aren’t the only way to invest in Russia

Chip Stapleton is a Series 7 and Series 66 license holder, passed the CFA Level 1 exam, and is a CFA Level 2 candidate. He, and holds a life, accident, and health insurance license in Indiana. He has eights years’ experience in finance, from financial planning and wealth management to corporate finance and FP&A.

Following Russia’s military assault on the neighboring nation of Ukraine in late February, the U.S., the EU, and other nations imposed strict sanctions on Russia’s largest financial institutions and enterprises, including Russia’s central bank and energy giant Gazprom. The sanctions have pushed the Russian financial system and markets into a new, and potentially prolonged, crisis.

Stocks in Russia are traded on the Moscow Exchange, which is the result of a merger between the Russian Trading System (established in 1995) and the MICEX Group (the oldest exchange in Russia) in 2011.

Since then, the exchange has expanded to include financial instruments ranging from cash equities to commodity futures. Learn more about investing in Russian stocks.

Key Takeaways

How To Buy Russian Stocks

The easiest way to gain exposure to the Russian stock market is by purchasing U.S.-traded mutual funds, exchange-traded funds (ETFs), or American Depository Receipts (ADRs). Since these are traded on U.S. exchanges, investors can avoid the complexities and risks associated with directly investing overseas, such as tax concerns, execution risk, and strange trading hours.

The Moscow Exchange has different times for different markets. The securities market is open from 9:30 a.m. until 11:50 p.m. Moscow time (GMT+3); derivatives, foreign exchange, and the commodities markets are open from 7:00 a.m. until 11:50 p.m.; and the standardized OTC market is open from 10:00 a.m. to 5:00 p.m. Moscow time.

Some popular Russian funds and ADRs available in the U.S. include:

Many other U.S. brokerages offer access to Russian stocks through ETFs and mutual funds, but they often charge higher commissions for international trades. However, investors in the U.S. are limited in what they can directly invest in due to sanctions against Russia, specifically government bonds and funds that might invest in energy or defense.

How To Analyze Russian Stocks

If you choose to invest in Russian ETFs or mutual funds, you’ll want to look at the country’s economic health before making an investment decision. A wide array of information on this subject, including current events analysis and economic data, can be found on the World Bank’s website. In addition, the International Monetary Fund (IMF) also provides valuable economic data.

Macroeconomic factors to consider include:

If you prefer to invest directly in Russia’s RTS, you can analyze stocks using the English version of the RTS website. From there, you can find a link to the public company’s website, where annual reports and other important disclosures are typically found. These reports are helpful when evaluating individual stocks or bonds rather than the broad economy.

Company-specific factors to consider are the same as you’d consider with a company based in the U.S., including:

You should consider both macro and microeconomic factors when evaluating an investment. Also, look at how the investment compares with other investments in the fund’s portfolio. For example, Russia’s economy may have contracted 0.2% in 2015, but the country’s equity market may have appreciated if these losses were better than expected. For example, GDP growth in 2018 surpassed expectations at 2.3%, and the World Bank’s forecast for 2021, 2022, and 2023 just as lucrative—3.2%, 3.2%, and 2.3%, respectively.

Risks Associated with Russian Stocks

Russia has become a risky emerging market ever since its 2014 military intervention in Crimea, Ukraine. Meanwhile, its reliance on crude oil exports has made it vulnerable to slumping oil prices amid global trade concerns. Many investors are also waiting to see the effects of recent key economic reforms that included regulation and supervision in banking, liquidity buffers, and fortification of capital. These reforms should make the market less risky, more transparent, and hopefully, make it easier for investors to access.

The reforms are too recent to have much of an effect yet, so some key risk factors you should consider are:

Russia continues to take steps to mitigate uncertainty and economic fluctuations, tackle poverty, get people back to work, and deal with financial corruption. The World Bank has predicted a marginal economic recovery during 2021, but it might be years before any measures taken can be analyzed.

Investors should consider these risks in the context of their portfolios. In a diversified portfolio, it might make sense to include exposure to Russian equities or bonds despite their higher risk. A diversified portfolio may increase long-term risk-adjusted returns.

5 Russian Stocks to Buy in August 2022 (Russia-Ukraine Conflict)

The following guide covers the Best Russian Stocks to buy in 2022 and beyond.

The best Russian stocks to buy include RSX, OGZD, LKOD, and others found in this list.

With the ongoing Russia-Ukraine Crisis, some of these options could provide major returns for investors over the long term.

While Robinhood is the most used brokerage for trading stocks, all of the stocks in this guide can be traded on any popular brokerage such as Vanguard, WeBull, Fidelity, TD Ameritrade, and others.

Prior to diving into the list of Russian stocks, it’s important to understand what Russian stocks are.

What are Russian Stocks?

A Russian stock can be defined as a company based in Russia that is publically traded on major stock exchanges.

The major industries of these Russian stocks include oil (energy), finance, and mining.

Russia is known to be one of the world leaders in natural gas and energy production.

According to the NewScientist, about 40 percent of Europe’s gas currently comes from Russia.

And with the ongoing conflict between Russia and Ukraine, there is a ton of potential for many stocks to benefit in the long term.

Therefore, having these Russian stocks in your portfolio early on has the potential to earn massive returns for investors.

Important: Before investing in Russian stocks, it’s important to understand the risks and commonalities of these investments.

Investing in individual stocks is not one of the top traits among the world’s best investors. In fact, the best investors are actually dead:

Some of the main risks with investing in certain Russian stocks include the following:

While there are several risks, it is still very possible for investors to make money from these stocks through share appreciation.

The same can also be said for other promising companies who file for Initial Public Offerings (IPOs).

Below you will find a complete list of Russian stocks to buy during 2022 and beyond.

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Best Russian Stocks

I recommend bookmarking this page to keep you up to date on the best Russian stocks to buy for the long term. This page is updated Weekly for your reference.

The following list was last updated on Sun, Aug, 14, 2022

As of this writing, all stocks listed below are currently available for trading on Robinhood and other brokerages.

The Russian stocks to buy below are ranked based on the following criteria:

1. VanEck Russia ETF (RSX)

The VanEck Russian ETF tops our list of Russian stocks as this fund tracks an index of large Russian companies weighted by market cap.

The major holdings of this ETF include Gazprom, Tatneft, NOVATEK, Polyus, and other major Russian companies.

Average Volume: 21.57M

Dividend Yield: 5.99%

2. iShares MSCI Russia Capped ETF (ERUS)

The iShares MSCI Russia Capped ETF is another popular fund that tracks the market-cap weighted index of Russian listed securities.

Major holdings of the iShares ETF include Gazprom, PJSC Lukoil, Sberbank of Russia, NOVATEK, and other large Russian companies.

Average Volume: 1.25M

Dividend Yield: N/A

3. Gazprom (OGZD)

Gazprom is the largest energy corporation in Russia that is known to be the largest natural gas company in the world.

This energy giant has been one of the staples of the Russian economy for decades now and is also a major player globally in the energy space.

Average Volume: 838K

Dividend Yield: 6.39%

Industry: Energy

4. PJSK Lukoil (LKOD)

The PJSC Lukoil Company is another one of Russia’s major energy companies that specializes in petroleum, natural gas, and other products.

Lukoil is the 2nd largest company to Gazprom and is ranked by Forbes as the 99th largest public company in the world.

Average Volume: 4.69M

Dividend Yield: 7.35%

Industry: Energy

5. Novatek (NVTK)

Novatek (NVTK) finishes our list of Russian stocks as Russia’s second-largest producer of natural gas and another major player in the world in energy production

According to Forbes, Novatek was ranked as the 316th largest public company in the world.

Average Volume: 122.19K

Dividend Yield: 15.66%

Industry: Energy (Natural Gas)

How to Find Russian Stocks

Finding Russian stocks to buy is a simple process we outline below. Follow these quick steps.

In this example, we are using Robinhood which is one of the most popular free brokerages available.

1. Sign up for a free Robinhood account – Click Here to Sign Up With Free Stock

2. Click the search bar on top and enter “Russia” and wait a few seconds.

3. You will notice the various Russian stocks and ETFs that appear in the dropdown menu.

Overall, these are various Russian stocks to buy for the long term. Always be sure to invest responsibly!

Refer to the video below for even more Russian stock ideas during this crisis.

Check out our most popular articles that have been read by thousands of unique visitors.

Best Russian Stocks FAQ

What are the Best Russian Stocks to Buy?

The best Russian stocks to buy include RSX, OGZD, LKOD, and others found in this guide.

What are the Major Industries of Russia?

The major industries of Russia include oil (energy), finance, and mining.

Are Russian Stocks a Good Investment?

In history, the global stock market has fallen during times of conflict on average by 15 percent and then recovered. Therefore, this could be a good buying opportunity for stocks to hold for the long term. Always be sure to assess the risk of any investment prior to buying.

When Did the Russia-Ukraine Crisis Start?

How to invest in the MOEX Russia

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The MOEX Russia Index is home to the 50 largest and most popular businesses in Russia. On this page, we’ll walk you through the different ways to invest in the Russian index and the pros and cons of each method available.

Where can I buy into the MOEX Russia Index?

You can invest in international indices using the brokers below. Use the links in the table to get started or scroll down to learn more about the MOEX index and how to invest.

What is the MOEX Russia?

The MOEX Russia Index is the benchmark index of the Russian stock market. It’s most popular with domestic investors and consists of the most liquid Russian companies from 10 different industries. All of these stocks trade on the Moscow Stock Exchange.

Is it a good investment?

Right now it is best to steer clear of the index until you are better able to assess the impact of Russia’s invasion of Ukraine, and the resulting economic sanctions placed on the country. It is extremely difficult, if not impossible, for foreign investors to invest in Russian companies and the financial situation in Moscow is murky at best.

The reaction to the initial invasion of Ukraine was a good example of the role geopolitical events can play in the performance of an index. Uncertainty about potential sanctions on Russia that could be imposed by the United States and the European Union caused the exchange to experience it’s worst single day drop on record.

The MOEX is particularly susceptible to these swings because many of the largest companies on the index are either state-owned or state-backed. That means the Russian government’s actions and motivations play an important role in the success of the index and these can be difficult to predict even in more settled times. If you ever do decide to invest, then you should be prepared to deal with volatility and uncertainty.

How do I invest in the MOEX Russia?

Here are three steps you should follow:

1. Choose investment type

To find the best investment strategy for your own personal investing goals, consider factors such as the relative size of transaction fees for each investment method, as well as the level of customer service that you want when investing. Generally, the more tailored each option is to individual investors, the higher the fees will be. Here are some of the most popular options:

An exchange-traded fund (ETF) is an investment fund that is able to be traded on a stock exchange during regular stock market hours, in a similar way to individual stocks. ETFs are typically composed of a group of different assets at once, such as a collection of bonds or commodities, and as such, they can also be structured to match the performance of stock indices such as the MOEX Russia Index. A MOEX Russia Index ETF gives you access to a highly diversified batch of stocks, without you needing to pay heavy transaction or management fees.

The downside of buying an ETF is that you end up holding both the best and worst-performing stocks listed on a given index. As a result, while you do lower your risk through diversification, you also dilute your gains compared to buying a smaller group of big winners. More aggressive investors might thus favour the next investment method on our list.

Individual stocks

If you want to focus on the top-performing stocks on the MOEX Russia Index rather than committing to the entire index, you can buy each of the stocks tracked by the index in separate trades instead. This allows you to evaluate each stock as you go, then trim your holdings until you own only the top-performing MOEX Russia Index stocks.

Some of the top companies on the Index are Gazprom, OAO, and RusHydro. That said, if you make dozens of individual trades to buy all of those individual stocks, then a bunch more to pare down to a smaller number of leaders, you’ll be spending a lot of time and money on all of those transactions.

Mutual funds

A mutual fund is an investment fund run by a professional money manager, which investors can buy through either a broker or the company that administers the fund. The money manager pools money from thousands of different investors, then invests all of that capital into different assets, aiming to create strong returns for everyone contributing to the fund. A mutual fund (also called an index fund) allows you to hold all of the MOEX Russia Index’s stocks at once, which lowers your risk level since you’re holding a large, diversified batch of stocks.

However, there are downsides to mutual funds when compared to more easily-tradable ETFs. Mutual funds can only be bought at the end of the stock market’s trading day, not during regular stock market trading hours, and on top of this mutual funds attract higher fees than ETFs. So if you’re going to use a mutual fund, it might make sense to try and buy and hold for a longer period of time, since a mutual fund is both more difficult and more expensive to trade than an ETF.

2. Use our top tips to be a successful investor

Before you start, we recommend that you review our top investment tips:

3. Choose a platform to invest with

Here are some of the best options in terms of investment platforms at your disposal:

Russian stocks and bonds.

We offer our clients:

Russian Stocks

Investments in shares of Russian companies is not only an opportunity to capitalize on the growth of their value. Investments in shares is a profitable investment strategy that gives you possibility to take part in Russian economy growth.

Securities give their owner the right of ownership of the company, the right to participate in company management, and the ability to receive dividends each year, which companies pay to the owners of its shares.

Bond Market

Russian Derivatives Market (Forts)

On FORTS market you can buy and sell futures contracts for shares of the leading Russian companies, stocks, currencies, oil, precious metals and other commodities.

Futures market due to the high liquidity and the possibility of the use of leverage allows investors, to profit from price fluctuations in the underlying assets. However, speculation in derivatives with high leverage are riskier for the investor.

How to start trading?

After opening a brokerage account in «Renesource Capital», and funding it, you will have access to the Russian stock and derivative exchange, you will be able to buy and sell securities on the trading floors available to you. To do this, you need the trading platform.

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.

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Top Stocks to Buy in Russia (MCX stock market) 2022 and 2023 with reliable historical price index that are expected to rise! MICEX Russia Forecast.

Best Stocks To Buy

Stocks on the stock market represent ownership that can be claimed on the businesses. Stocks are very popular among traditional traders and investors as most of the largest companies are present on these exchanges. There are probably only a few people on the planet who didn’t hear about Wall Street previously, the home of the New York Stock Exchange.

Investing and trading isn’t easy, especially for those who can’t devote enough time for research. Building a proper portfolio and learning to manage your personal finances should be the first step for everyone looking to enter these markets. Our website features stock quotes collected via exchanges and we also offer bearish or bullish signals via our forecast feature. We use a Machine Learning (AI based) algorithm that generates our prediction charts via historical market data and market cycles. Our aim is to make it easier for you to build and manage your portfolio.

This page lists the Top 100 stocks collected from a list of 2000. These companies should offer the most stable investment opportunities with a good rate of return. In order to make it to our top list, the stocks need to have a high trade volume from the previous day and also need a B+ or higher as a Historical Index score. To read more about how we rate the projects please follow the link.