Chile, Mexico ETFs to Capture the Growth in Consumer Spending | ETF Trends

Money managers are starting to take an interest in Mexico and Chile as consumer spending picks up. Retail investors can also access the two markets through country-specific exchange traded funds.

For example, ETF investors can use the iShares MSCI Chile Capped ETF (NYSEArca: ECH) and the iShares MSCI Mexico Capped ETF (NYSEArca: EWW) to track MSCI indices that follow Chilean and Mexican equities.

Investors can use the SPDR MSCI Mexico Quality Mix ETF (NYSEArca: QMEX) to track a more customized basket of Mexico stocks that were selected based on metrics like value, quality and low volatility.

Additionally, the db X-trackers MSCI Mexico Hedged Equity Fund (NYSEArca: DBMX) and the recently launched iShares Currency Hedged MSCI Mexico (NYSEArca: HEWW) provide exposure to the Mexico’s market without the added currency risk of a depreciating peso currency. [iShares Unveils Massive Expansion to Currency Hedged Suite]

In a recent regional survey conducted by FT Confidential Research, portfolio managers are favoring Chilean and Mexican clothes retailers, supermarket chains and shopping mall groups due to rising consumer sales and improving economic conditions, reports Lucinda Elliott for the Financial Times.

The country-specific ETFs also hold significant exposure to the consumer sectors. For instance, EWW includes a hefty 22.1% tilt toward the consumer staples sector, along with 11.5% toward consumer discretionary names. ECH, though, has a smaller 9.1% tilt toward consumer staples and 7.6% in consumer discretionary.

Spending in each of the countries was slightly up over the second quarter year-over-year.