Mexico’s economy and exchange traded fund (ETF) were caught up in a mix of negative reports about drug wars and border disputes. But in the last six months or so, the picture has started to brighten.
Talk about a comeback. Andres Martinez for Bloomberg reports that Mexico’s finance minister Ernesto Cordero implied that the economy may grow between 4%-5 % next year, with GDP at around 4.1% this year. After he said that, the peso rose, and it’s up 3.4% year-to-date – the third-best of the 16 currencies Bloomberg tracks. [Mexico ETF Gears Up.]
Meanwhile, Mexico’s Economy Ministry plans to add 26 U.S. goods to its tariffs list in response to the country’s continuing trade dispute with the United States, a move that could ultimately hurt U.S. farmers. According to The Wall Street Journal, this is over the ban on Mexican truckers operating north of the border, as President Barack Obama signed legislation banning their business. [BlackRock Sees Mexcio As ETF Hotspot.]
Visit our Mexico page for more stories about the Mexican economy.
- iShares MSCI Mexico (NYSEArca: EWW): The largest sector weighting is telecom, with 30.7% of the fund; consumer staples is 24.1%; materials is 15.8%.
- iShares S&P Latin America 40 Index (NYSEArca: ILF): Mexico is 24% of the fund; Brazil is the largest weighting with 61.9%; materials and financials are both about 24% of the fund.
- CurrencyShares Mexican Peso (NYSEArca: FXM)
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
Tisha Guerrero contributed to this article.