Mexico and its exchange traded fund (ETF) are feeling down in the dumps, but its outpacing some other regions.

The iShares Mexico Fund (EWW) has fared better than Europe, Russia, Asia, Canada, Australia and Brazil to name a few, so what gives? It could be that although growth is slow, it is steady and consistent. Another reason some big dips might have been avoided is that Mexico has kept its interest rates high enough to do battle with inflation.

Gary Gordon for ETF Expert reports that until recently, the hot money was pouring into Rio, but the commodities selloff and fear of global recession has left the country of Brazil high and dry. iShares MSCI Brazil (EWZ) has taken a hit in the last month, down 8.2%.

Relative to that, Mexico has been strong, down 2.2% in that time period. The fund has been helped along byu companies such as Cemex, a worldwide manufacturer of building materials, and America Movil, Latin America’s largest wireless provider.

The peso is having a nice ride, too: the CurrencyShares Peso (FXM) is above its long-term trendline. FXM is up 8% for 2008, defying the U.S. dollar and taking tourists by surprise that Mexican stuff isn’t so cheap anymore.

Read the disclosure, as Tom Lydon is a member of the board of Rydex funds.

Tags: Currency ETFs, Emerging Markets, EWW, EWZ, FXM, Latin America, Mexican Peso, Mexico