MarketsMuse update courtesy of extract from Bloomberg LP Elena Popina and Jackie Klauberg

Что ты собирáeшься дéлать с таки́ми больши́ми деньгáми?

(translation: What are you going to do with all that money?)

Investors are piling into the biggest exchange-traded fund tracking Russian equities at a record pace as the cheapest valuations in emerging markets and easing tension in Ukraine spur bets stocks will rebound.

The number of outstanding shares in the Market Vectors Russia ETF (RSX:US) has soared 59 percent since early August to 94.5 million, the highest level since April 2011. The demand is building after the fund tumbled (RSX:US) 12 percent in the last three months to trade near a five-year low.

The ETF is swelling as investors speculate that Russian stocks, which have dropped the most in the world this year as international sanctions curbed growth, will recover amid signs the seven-month conflict in Ukraine is easing. Foreign Minister Sergei Lavrov said yesterday the country will recognize the results of parliamentary elections in the former Soviet republic as a cease-fire entered its eighth week.

“Waning geopolitical tensions and low valuations could be a good reason to invest and then cash in, once the valuations go up,” Ivan Manaenko, head of research at Veles Capital LLC in Moscow, said by phone on Oct. 27. “Any absence of fighting and any evidence of dialog is seen by investors as positive.”

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