“The market reaction has this takeaway that Trump’s campaign is struggling,” John Hardy, Saxo Bank’s head of foreign-exchange strategy, told Bloomberg. “The market has seized upon this as trading the Mexican peso as some kind of financial market proxy for the political outcome of the election.”

Since EWW and QMEX do not hedge currency risks, a strengthening peso currency would further bolster returns – an appreciating peso would translate to higher U.S. dollar-denominated returns.

Additionally, Mexican markets were supported by optimism that the Organization of Petroleum Exporting Countries and other large crude oil producers would limit production. Mexican assets have been weighed down by the plunge in oil prices, which raised concerns about the government finances and triggered negative outlook on the country’s credit rating.

For more information on the Mexican markets, visit our Mexico category.

iShares MSCI Mexico Capped ETF