WisdomTree has launched a new global equity exchange traded fund that specifically excludes exposure to Mexican markets, which has suffered in the wake of Donald Trump’s election day win as an increasingly protectionist stance dampened Mexico’s export-heavy economic outlook.
On Friday, WisdomTree rolled out the WisdomTree Global ex-Mexico Equity Fund (NYSEArca: XMX). XMX comes with a 0.30% net expense ratio.
The new Global ex-Mexico Equity Fund tries to reflect the performance of the WisdomTree Global ex-Mexico Equity Index, which is comprised of 2000 largest companies in developed and emerging markets throughout the world, excluding Mexico.
XMX may be a timely play for investors in the current market where protectionist rhetoric and a more domestically focused Trump administration could impede trade and growth in Mexico. Investors have already soured on Mexican markets, with the iShares MSCI Mexico Capped ETF (NYSEArca: EWW) down 4.5% over the past three months, compared to the benchmark MSCI All Country World Index’s 6.8% gain. However, to be fair, Mexico makes up a very small portion of the MSCI ACWI.
The new global equity ETF’s underlying index currently only tracks stocks from United States, Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, Japan, Australia, Israel, Hong Kong, Singapore or Canada, Bulgaria, Brazil, Chile, China, Colombia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Iceland, India, Korea, Latvia, Lithuania, Malta, Mexico, Peru, Poland, Romania, Slovakia, Slovenia, according to the prospectus.
Current top country weights include U.S. 57.9%, Japan 8.3%, U.K. 6.5%, Canada 3.4%, France 3.3%, Switzerland 3.3%, Germany 3.0%, Australia 2.2%, China 1.9% and South Korea 1.5%>
Underlying components may be comprised of Common stocks, REITs, tracking stocks, and holding companies are eligible for inclusion. ADRs, GDRs and EDRs are excluded, as are limited partnerships, limited liability companies, royalty trusts, Business Development Companies (BDCs) and companies that are not incorporated and headquartered in the United States.
Current top company weights include Apple 1.8%, Microsoft 1.3%, Alphabet 1.0%, Exxon Mobile 0.9% and Amazon 0.9%. Sector components include financials 17.9%, tech 15.7%, consumer discretionary 11.9%, health care 11.7%, industrials 11.5%, consumer staples 9.7%, energy 6.5%, materials 5.2%, telecom 3.4%, utilities 3.3% and real estate 3.2%.
XMX’s underlying index also shows a 2.36% dividend yield.
For more information on new fund products, visit our new ETFs category.