The New York Stock Exchange and Nasdaqin American depositary shares in several Russia-related stocks on Monday, following new sanctions from the White House.
Investors will be restricted from trading those stocks while the halt persists. Once trading resumes, there will likely be a"catchup" period for the fund's investment returns since current returns don't reflect up-to-date pricing for the frozen stocks, Rosenbluth said. That many diversified funds and portfolios hold just a small share of their assets in Russian entities and debt makes sense given the country's size in the global economy, according to Charlie Fitzgerald III, a certified financial planner and founding member of Moisand Fitzgerald Tamayo in Orlando, Florida.A diversified portfolio may hold 25% of its stocks in non-U.S. companies; of that, perhaps 10% is in emerging-market stock, of which Russian investments are a portion.
Fitzgerald cautioned against selling any Russia-focused investments in the"heat of the moment" or from a feeling of panic. Emerging-market investments have a place in a portfolio — and the Russian invasion highlights the relationship between risk and return, Fitzgerald said. "You have this undeniable relationship between risk and reward, but you have to tolerate unsettling moments like these when reaching for higher returns," he said.