The iShares MSCI Mexico Capped ETF (NYSEArca: EWW) is positioned to close this week flat or with a modest loss.

That lags the 2.3% gained by the iShares Latin American 40 ETF (NYSEArca: ILF), which features an almost 28% weight to Mexico. EWW’s lethargy is disappointing considering that earlier this week Moody’s raised Mexico’s credit rating to A3, or upper medium investment grade. Mexico is Latin America’s second-largest economy behind Brazil. [Moody’s Upgrades Mexico to A Status]

Mexican stocks have supporters, including J.P. Morgan. The bank believes the Moody’s upgrade could be constructive for the Mexican peso.

J.P. Morgan highlighted 10 Mexican stocks that could benefit from lower borrowing rates that come with the country’s higher credit rating, Barron’s reported. That group Wal-Mart’s Mexican unit Walmex, Mexchem (MEXCHEM-MX), Grupo Mexico (GMEXICOB-MX), Coca-Cola FEMSA (KOF), SANMEX (SANMEXB-MX), Femsa (FMX), Gap (PAC), FIBRAMQ (FIBRAMQ12-MX), Banorte (GFNORTEO-MX) and AC (AC-MX).

Assuming J.P. Morgan’s outlook is correct, that should prove to be good news for the $2.5 billion EWW. Femsa, Banorte, Walmex and Grupo Mexico  are top-10 holdings in EWW combining for nearly a quarter of the ETF’s weight.

Mexchem, Coca-Cola Femsa and AC combine for another 4.3% of EWW’s weight.

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