Ukraine's neighboring markets investors are feeling the heat
2/3 17:02
Russia's invasion of Ukraine was the biggest attack by one state against another in Europe since WWII. The war, entering day 7, has taken its toll on the markets, especially those which border Ukraine. Central or Eastern European countries, such as Poland, Hungary, Romania, and Slovakia have condemned the attack and braced for refugees. Poland's market index — the WIG – has fallen by -5.5% since the war broke out. Hungary's BUX and Romania's BET have dropped by -20% and -6% respectively over the same period.
ETFs to play a bounce-back of Ukraine's neighboring markets
Investors can play the future rebound of Ukraine's neighboring through Exchange-traded funds. The iShares MSCI Poland Capped ETF (EPOL) seeks to track the MSCI Poland IMI 25/50 Index and invests in a broad range of Polish stocks. The fund has a 41% allocation to Financials, 13.7% to Energy, 11% to Materials, and 10.13% to Communication. EPOL has 38 holdings and include POWSZECHNA KASA OSZCZEDNOSCI BANK (12.92%, Financials), KGHM POLSKA MIEDZ SA (8.25%, Materials), BANK PEKAO SA (7.62%, Financials), POLSKI KONCERN NAFTOWY ORLEN SA (7.59%, Energy), and PZU SA (6.79%, Financials). The fund has a total expense ratio of 0.57% and trades primarily on the NYSE Arca. Year-to-date, the fund's NAV has fallen by -15.08% (as of Februa...