How to invest in the MOEX Russia

The Russian MOEX stock exchange is home to some of the largest companies in Europe. This page explains how to invest in the MOEX today.
Updated: Sep 1, 2022
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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.

1
Min. Deposit
$ 10
Promotion
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Wire Transfer
Full Regulations:
CySEC, FCA
Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
2
Min. Deposit
$ 100
Promotion
User Score
10
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal
Full Regulations:
ASIC, FCA, FINMA, is a licensed bank (IG Bank in Switzerland)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$ 0
Promotion
User Score
9.5
$0 commission and $0 Options contract fees
Upgraded research with advanced charts
Smart Menus for faster trades
Start Trading
Payment Methods:
Full Regulations:

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 an investment type
  2. Use our top tips to succeed
  3. Choose a platform to invest with

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:

ETFs

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:

  • Do your research. Take the time to consider all the pros and cons the MOEX Russia Index before putting any of your money into it. Once you’ve made your decision, build a smart investment plan, which will improve your chances of success. The more prepared you are, the better equipped you’ll be to keep emotions such as fear and greed in check, so they don’t cloud your judgment if and when the market becomes volatile.
  • Set a budget. The budget you set should account for your own level of risk tolerance, as well as how much money you can afford to lose. It is important to set and keep to a budget, as if you let your losses escalate you could hurt your confidence and struggle to preserve the investment capital you’ll need for future trades.
  • Select the right platform. Figure out your specific investment goals before you start your search, so you’ll know what you’re looking for ahead of time. While one investor might choose a platform based entirely on the size of its transaction fees, another might focus more on the quantity and quality of investment advice they can get. Different options work best for different people, so be sure to research your approach thoroughly.
  • Grow your investments gradually. As a beginner investor, you should start with a smaller amount of money. That way if you make a mistake due to inexperience, it won’t hurt your ability to make future trades or pay for necessary expenses. You can always ramp up the size of your bets as you gain experience and expertise as an investor. 
  • Think long-term. To succeed long-term, you can attempt to buy and hold a mutual fund related to the MOEX Russia Index, with an eye on landing bigger gains. Even if engaging in shorter-term trading with ETFs, you should always keep in mind your long-term goals you’re looking to achieve. When keeping your investment for the long term, make sure you analyse market conditions to make sure a bear market hasn’t set in, because indices tend to fall in value considerably when that happens.

3. Choose a platform to invest with

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

  • Brokers & trading platforms. A broker offers online tools at a low cost, and are generally the best place to invest in the MOEX Russia Index. While they offer convenience, online brokers don’t usually provide much in the way of in-depth investment advice, though. If you’re looking for more immersive investing advice to guide your decisions, consider a different route.
  • Robo advisors. Robo advisors are algorithm-powered trading platforms which execute trades automatically. Some robo advisors will allow you to discuss your investment strategy with a human being, who can help you craft a strategy and programme the robot to trade according to your given strategy. Combines with the relatively low trading fees charged by robo advisor platforms, and you have a viable option for many investors. However, a robo advisor still doesn’t offer as hands-on an approach as a dedicated financial advisor does.
  • Financial advisors. Financial advisors offer the most investment advice to investors, but these services come at a premium. They’ll go over your financial goals with you, walk you through lots of different investment options, and help you meet your goals. The extra charges that come with this level of service and guidance can sometimes be worth it given the expertise investors can gain access to. But this is mainly the case if you’re considering a complex investment strategy. As the MOEX Russia Index is fairly simple, choosing a financial advisor probably isn’t worth the expense in this case.
  • Banks. Your bank gives you the convenience of having all of your financial instruments in one place. But, offsetting this convenience, banks usually charge high fees. It is also worth noting that these high fees come without the same provision of customer service that top financial advisors offer. So other than the convenience factor, banks don’t offer many advantages over other investment strategies.
1
Min. Deposit
$ 10
Promotion
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Wire Transfer
Full Regulations:
CySEC, FCA
Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.

What should I do now? 

To invest right now, log into your online broker’s website, pick the investment asset you want to use to buy into the MOEX Russia Index, then click buy. Once you’re invested, keep tracking your investment, so you can be prepared to change course if the market gets ugly.

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