Impacts of Russia’s Invasion of Ukraine

On Thursday, February 24th, Russian President Vladimir Putin launched its invasion of Ukraine introducing a new uncertainty to markets. Globally, Russia makes up a small portion of the economy as its weight in the MSCI All Country World ETF (ACWI) is 0.21%. The exposure of US equities to Russia is small. According to JP Morgan Research, US companies have low direct exposure to both Russia (0.6% for Russell 1000) and Ukraine (0.1%). However, Europe is more exposed to the risks of the conflict as they are more economically linked with the countries.