It seems no country-based exchange traded fund (ETF) can hide from the market’s recent, sharp decline, not even our neighbor Mexico. Although the iShares MSCI Mexico Index (EWW) is down 16.6% for the month, it’s up 4.3% year-to-date.

The market decline can make it difficult to see Mexico’s economic progress during the second quarter. The country’s economic growth grew most likely because of the U.S.’s demand for exports, according to Patrick Harrington for Bloomberg. Construction output rose 1.2%, and GDP grew 2.9% annually in the quarter. However, Mexican interest rates are at 7.25% as a "preventative" measure to offset rising food costs. In July, the price of tomatoes, milk, avocados and other Mexican consumer prices rose 4.1%, which is its largest increase in six months.

Eww_etf_chart

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.