ETF Trends
ETF Trends

The stumbling U.S. economy is hitting Mexico’s exchange traded fund (ETF) and economy on two fronts: remittances and a lack of demand for exported goods on the part of American consumers.

Jason Beaubien for Reuters says that Mexico experienced the largest decrease in money sent home by migrants ever recorded by Mexico’s central bank. Remittances, as they’re known, are down by 16% and it’s hitting rural areas especially hard. Cash sent home amounts to billions of dollars and is Mexico’s second largest source of income after oil. [How Trade Affects Mexico.]

Paul Kiernan for The Wall Street Journal reports that, on a positive note, Mexican industrial production is up by 1%. Solid growth in the manufacturing sector has picked up where construction dropped off.

China’s move to curb lending and concerns about Greece’s sovereign debt is hitting the peso as risk aversion comes into play, Ye Xie for BusinessWeek reports. [Can Mexico Prevail?]

For more stories about Mexico, visit our Mexico category.

  • iShares MSCI Mexico (NYSEArca: EWW)

  • CurrencyShares Mexican Peso Trust (NYSEArca: FXM)

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.