“The Mexican equity market itself has been tracking rather closely with greater Latin America in general as the largest broad based Latin America fun, also from iShares, ILF (iShares Latin America 40, Expense Ratio 0.49%, $1.1 billion in AUM) is only out-performing EWW head-to-head in the trailing six month period by a little more than 200 basis points. On the other hand, year-to-date thanks to a recent run, EWW has reversed that performance gap and is out-performing ILF by over 200 basis points,” according to ETF Daily News.

The peso is an important part of the Mexico investment thesis because exports account for over a third of GDP in Latin America’s second-largest economy. So are oil prices because Mexico is one of the largest non-OPEC producers in Latin America.

It is expected the Trump Administration and officials from Mexico will begin negotiations on adjustments to the North American Free Trade Agreement (NAFTA) later this year. That could provide another catalyst for EWW and Mexican stocks if the White House backs off a heavy-handed approach to the U.S. trade relationship with Mexico.

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