The worst countries for investors in 2014 — and maybe 2015, too

 
By

Victor Reklaitis

NEW YORK (MarketWatch) — Russia’s stocks performed badly, or uzhasno as Vladimir Putin might put it, while India’s stocks registered a terrific 2014 thanks to “Modi mania” — and each country’s equity market easily could stay on its current track in 2015.

Russia

Russian ETFs dominate the list below of this year’s 10 worst-performing foreign equity ETFs, with the Market Vectors Russia Small-Cap ETF RSXJ, +6.64% grabbing the biggest-loser spot. Nigerian, Greek, Brazilian and Colombian ETFs also rank high on this list of worst places to have invested.

2014’s 10 biggest losers among country ETFs

ETF name	Ticker	% change YTD
Market Vectors Russia Small-Cap ETF	RSXJ	-55.1%
Market Vectors Russia ETF	RSX	-48.3%
iShares MSCI Russia Capped ETF	ERUS	-48.0%
SPDR S&P Russia ETF	RBL	-46.7%
Global X MSCI Nigeria ETF	NGE	-42.7%
Global X FTSE Greece 20 ETF	GREK	-34.6%
EGShares Brazil Infrastructure ETF	BRXX	-32.9%
iShares MSCI Colombia Capped ETF	ICOL	-30.4%
Global X MSCI Colombia ETF	GXG	-29.3%
Market Vectors Brazil Small-Cap ETF	BRF	-28.6%
Source: XTF.com data as of 12/18/14 on all ex-U.S., country-specific, non-leveraged equity ETFs

Plunging oil prices, sanctions, the crumbling ruble and rising sovereign debt yields have created what one analyst calls the “perfect storm” for the Russian economy.
A Russian recovery isn’t likely in the near term, and it won’t happen without oil rebounding or sanctions easing, said Nick Smithie, chief investment strategist at Emerging Global Advisors, an ETF provider focused on developing markets. “My view is that there is simply no reason to buy Russia,” Smithie told MarketWatch. He emphasized the country is falling into recession, there is a lack of foreign investment and the cost of capital is high and increasing.
Crude’s crash also has hammered oil-rich Nigeria, Brazil and Colombia, while Greece has got investors worrying about a possible default and an exit from the eurozone.