BRIC nation Brazil is being avoided by ETF investors in Latin American funds as they favor better-performing countries such as Mexico with stronger economic growth.

For example, iShares MSCI Mexico (NYSEArca: EWW) is up 22.5% the past year while iShares MSCI Brazil (NYSEArca: EWZ) has lost 14.5%, according to Morningstar.

The Mexican economy is forecast to grow 4% in 2013, more than Brazil. [Mexico ETF Boosted by Expanding Economy]

“As Brazil remains a laggard in Latin America, more U.S. investors are pulling money from funds that track the emerging-market giant,” reports Murray Coleman at “But portfolio managers aren’t convinced that such a shift is short-term performance chasing. Rather, they see longer-term political and economic problems facing Brazil.” [Brazil Rebounding After Tough 2012]

The $9 billion iShares MSCI Brazil, the most popular of its kind tracking Latin America, saw outflows of $269.4 million in the three months through January, according to the article. In contrast, the iShares MSCI Mexico (EWW) attracted $596 million in net inflows.

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