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.
Still, perhaps due in large part to its proximity to the the U.S., Mexico is often viewed as one of the safer emerging markets for investors, but Mexico’s central bank raised interest rates recently and is expected to do more of the same this year.
Year-to-date, investors have pulled nearly $140 million from EWW.
For more information on the Mexican markets, visit our Mexico category.