As an oil exporter, Mexico’s currency has been hit by the falling crude oil prices – ETF investors should keep in mind that while Mexico has a large oil industry, none of the country-specific ETFs include exposure to the sector. However, Mexico’s commodities exposure has not punished EWW as harshly as falling commodities prices have done to the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ).

Multiple factors are dragging on the Brazilian economy. Unemployment rose to 7.9% in September from 4.7% in October last year. Inflation has jumped over 10% for the first time since 2002. The budget deficit has widened to 9.5% of GDP. Additionally, lower commodity prices, diminishing consumer credit boom and a corruption scandal at state-run oil giant Petroleo Brasileiro have all weighed on the economy. [Corruption Probe Plagues Brazil ETF]

Slumping commodities prices are also “getting analysts predicting another year of economic contraction for the region at a time when the global activity is forecast to grow 3.3 percent, according to data compiled by Bloomberg,” reports the news agency.

iShares Latin American 40 ETF