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ETFs Finally Find a Crisis They Can’t Trade Through in Ukraine

  • Russia ETFs and options around the world halted amid sanctions
  • Industry usually offers price discovery and liquidity in routs

From the pandemic to the Greek debt crisis, exchange-traded funds have operated like it was business as usual during some of the toughest times in markets. But with Russia’s war on Ukraine, the industry is finally facing an event it can’t trade through.

The announcement Wednesday that a tiny Tokyo-listed product will halt trading next week means every Russia-focused stock ETF in the world is now suspended or will be soon. That kind of shutdown is something events like the Arab Spring and even Covid never managed to do.