Market Vector Russia ETF Trust (RSX) Enters a New Bear Market As Oil Tumbles

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While some investors feel that Russian equities may now be oversold, which if you look at the Market Vector Russia ETF Trust (NYSEARCA:RSX) you will certainly see how they can argue such, the downtrend may actually have quite a bit of time left.

As oil prices continue to plunge, approaching $30 a barrel, the Russian economy, which heavily relies on oil production, continues to suffer quite drastically. As one can see with the Market Vector Russia ETF Trust (NYSEARCA:RSX), equities in general in the country have plunged as well. Over the last two years this ETF plunged over 50%, and the downtrend seems to have picked up over the last two weeks as oil prices have dropped over 15% in this time frame alone. With some analysts predicting that oil could fall to $20 sometime this year, unless there is a drastic move by OPEC, the Market Vector Russia ETF Trust (NYSEARCA:RSX) may continue to realize loses.

The stock closed at $13.11 during the last trading session. It is down 26.84% since June 8, 2015 and is downtrending. It has underperformed the S&P500 by 22.15%.

Market Vectors Russia ETF seeks to replicate as closely as possible the price and yield performance of the DAXglobal Russia+ Index (DXRPUS). The company has a market cap of $1.55 billion. DXRPUS is a modified market capitalization-weighted index consisting of publicly traded companies that are domiciled in Russia. It currently has negative earnings. DXRPUS comprises a diversified group of many of the largest and most liquid companies in the investable universe.

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