Questionable Timing for First Russian ETF

While Russia has overcome most of the political instability and economic uncertainty of the 1990s, there are still sizable risks in this market. Political and corporate reforms still have a long way to go, and corruption and a lack of corporate transparency contribute to the market's inherent volatility.

There have also been concerns about Russian President Vladimir Putin rolling back democracy in the country, as well as stepping up anti-American rhetoric that harkens back to the Cold War.

But others remain positive on the territory. "Currency risk is nil. The ruble is impregnable," says John Connor, portfolio manager of the (TMRFX Quote - Cramer on TMRFX - Stock Picks)Third Millennium Russia Fund (TMRFX). "Political risk is mostly people's perceptions. I think there is little risk of any more companies becoming nationalized. However, it's heavily weighted to oil, and right now that is not a top-performing sector. It's not that they aren't undervalued based on fundamentals, but the market isn't interested in oil stocks right now. So, if oil is fully valued, you could be buying a fully valued fund."

XShares Launches More HealthShares ETF

In other ETF news, Xshares Advisors, a financial services company creating ETFs to track slices of the health care industry, launched the The HealthShares Dermatology and Wound Care ETF (HRW) on the New York Stock Exchange. Comprising about 25 stocks, the fund tracks an index that is based on a proprietary intellectual model, developed by Xshares Group, the parent of XShares Advisors.

The ETF includes companies seeking to develop and/or sell therapeutic agents for the treatment of a wide variety of skin disorders. The expense ratio is 0.75%.

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