Additionally, under new economic reforms, Mexico’s energy sector will shift form a market run by a single company, Pemex, to a competitive one with private oil and gas firms operating under contract with the state, Wall Street Journal reports.
The iShares MSCI Mexico Capped ETF (NYSEArca: EWW) includes a 3.6% allocation toward Fibra Uno Administracion REIT. The financial sector makes up 21.5% of the fund’s portfolio. EWW is up 2.6% year-to-date. [Mexico ETFs Get Help From Surprise Rate Cut]
Alternatively, the db X-trackers MSCI Mexico Hedged Equity Fund (NYSEArca: DBMX) has a 3.6% weight in Finbra Uno and a 24.5% allocation toward financials. This Deutsche Bank ETF hedges against a currency risk. DBMX is up 7.0% since it began trading Jan. 23, 2014.
For more information on Latin American economies, visit our Latin America category.
Max Chen contributed to this article.