Although Mexico has been highlighted as a possible beneficiary of improving economic data in the U.S., EWW has betrayed the faith of investors viewing the country as one of the more conservatively positioned developing markets. Additionally, EWW has been a laggard relative to U.S. stocks, dispelling the notion that stocks in the two countries share a tight correlation. Last year while the S&P 500 surged, EWW traded slightly lower. [Problems for the Mexico ETF]
Interestingly, Mexico is one of just Latin American countries to have an “A” credit rating of any level. Chile is the other. Year-to-date, the iShares MSCI Chile Capped ETF (NYSEArca: ECH) is the second-worst non-leveraged ETF.
iShares MSCI Mexico Capped ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of ILF.