Still, there are reasons to believe EWW has more long-term upside than downside. Mexico is looking to liberalize its energy sector in an effort to boost output and foreign direct investment in the country. As labor markets in China and elsewhere mature and wages rise, Mexican labor becomes more competitive even if still more expensive, reports CNBC. Then there is the obvious catalyst of proximity to the U.S., the world’s largest economy. No emerging market can come close to rivaling Mexico on that front and that advantage is not going anywhere.

Although Mexican stocks look expensive compared to China or Russia, that premium may be justified because in the current environment, investors want some element of dependability in their emerging markets investments. EWW may just offer that.

iShares MSCI Mexico Capped ETF

ETF Trends editorial team contributed to this post.