As a more tactical play, ECON offers investors the advantage of not being excessively allocated to state-controlled companies and the ETF does offer a 16.6% weight to Mexico, one of the developing economies global investors were most bullish on heading into 2014.

“Mexico is one of the few markets investors can’t seem to get enough of, as the country implements energy and other economic reforms. The market has run up alongside these developments, but there are some opportunities,” according to Barron’s.

The iShares MSCI Mexico Capped ETF (NYSEArca: EWW) was the second-best single-country ETF tracking a Latin American market last year, though that is not saying much because EWW finished the year in the red. However, the ETF is up 5% in the past 90 days and has been less bad than the major BRIC ETFs to start 2014.

Money managers have also started nibbling at LatAm ETFs with EWW being a favored destination. Some professional investors have been attracted by the allure of market friendly reforms promise to make the country’s economy more globally competitive and attractive to foreign investment.

There are, however, dueling opinions on Latin America’s second-largest economy. BlackRock is underweight Mexican stocks while J.P. Morgan has an overweight rating on the market.

iShares MSCI Mexico Capped ETF

 

Tom Lydon’s clients own shares of EEM.