Skip to Content

Are Your ETFs or Emerging Market Funds Full of Russian Stocks and Bonds?

February 28, 2022 Blog

As a result of the Russia-Ukraine war last week, Russia’s sovereign bonds plummeted to distressed levels and Russian stocks dropped the most on record.Investment Fraud Lawyer for Russian ETFs

UBS triggered margin calls on some wealth management clients that use Russian bonds as collateral for their portfolios after marking down the value of debt issued by Russia and its companies according to Bloomberg News. UBS cut the lending value of some Russian Bonds to zero and is requiring customers to post additional collateral or face abrupt liquidation of securities in their accounts.

Data from Morningstar shows that large money managers such as BlackRock, PIMCO and Invesco all had exposure to Russian bonds as of the end of last year, while others were increasing positions even as rumblings of war rose.

Many emerging market funds that millions of retail investors hold in their portfolios have significant exposure to Russia.

For example, as of January 2022, Carmignac Portfolio EM Debt fund had the world’s largest Russian debt position at over 43%, which was an increase of 10% from August 2021. Vontobel’s Eastern European Bond AM had 40% Russian bonds.

ETFs exposed to Russia are also plummeting. The $1.4 billion VanEck Vectors Russia ETF (RSX) has fallen more than 28% just this year.

Investors need to review their portfolios and see if they have excessive exposure to Russia. It may be the case that financial advisors who recommended unsuitable exposure to Russia will face investment fraud cases from burnt investors.

Client Reviews

“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
View More