Meanwhile, the Mexican peso currency has steadily strengthened to a five-month high against the U.S. dollar. The peso was trading around 12.87 per U.S. dollar.
While investors can hedge against currency risk with the recently launched Mexico hedged-equity ETF, the db X-trackers MSCI Mexico Hedged Equity Fund (NYSEArca: DBMX), the stronger peso would benefit a non-currency-hedged fund, like EWJ. DBMX has increased 4.8% over the past three-months. However, if the peso begins to depreciate against the U.S. dollar, investors could take a look at DBMX.
iShares MSCI Mexico Capped ETF
For more information on Mexico, visit our Mexico category.
Max Chen contributed to this article.