Mexico offers strong equity returns, but significant political, economic, and security risks require careful consideration before investing. The MSCI Mexico Index and iShares MSCI Mexico ETF outperform the S&P 500 in returns, but both carry much higher volatility and weaker risk-adjusted metrics. I rate EWW as a Hold due to its high volatility; it's suitable only for investors who can stomach large swings for potential outperformance.
EWW offers broad exposure to Mexico's stock market, but is highly concentrated in a few sectors and top-heavy in holdings. Mexico's macro outlook is clouded by US tariffs, political uncertainty, and heavy reliance on US trade and remittances. Recent performance is driven more by speculation than fundamentals, with technicals signaling potential for significant downside risk.
The Mexican stock market, as represented by EWW, has managed to beat the S&P 500 by almost 50 percent over the past 25 years. Mexico's economy has very significant structural advantages, mainly resulting from proximity to the U.S. EWW's holdings tend to be very high-quality businesses, and I believe that the ETF is structured better than many other single-country emerging market funds.
![]() EWW 11 Jun 2024 Paid | Semi Annual | $0.48 Per Share |
![]() EWW 20 Dec 2023 Paid | Semi Annual | $1.03 Per Share |
![]() EWW 7 Jun 2023 Paid | Semi Annual | $0.46 Per Share |
![]() EWW 13 Dec 2022 Paid | Other | $1.04 Per Share |
![]() EWW 9 Jun 2022 Paid | Semi Annual | $0.75 Per Share |
![]() EWW 11 Jun 2024 Paid | Semi Annual | $0.48 Per Share |
![]() EWW 20 Dec 2023 Paid | Semi Annual | $1.03 Per Share |
![]() EWW 7 Jun 2023 Paid | Semi Annual | $0.46 Per Share |
![]() EWW 13 Dec 2022 Paid | Other | $1.04 Per Share |
![]() EWW 9 Jun 2022 Paid | Semi Annual | $0.75 Per Share |
XBER Exchange | US Country |
The company operates as an investment fund focused primarily on the equity market of Mexico. It commits to allocating at least 80% of its assets towards securities that are part of its underlying index or investments closely mimicking the economic characteristics of these securities. This strategy aims to closely track the performance of a specifically designed index that reflects the comprehensive landscape of large-, mid-, and small-capitalization segments within the Mexican equity market. Furthermore, the fund identifies as non-diversified, meaning it may concentrate its investments more heavily in fewer securities, potentially increasing its risk and return profile.
The fund dedicates the majority of its portfolio, at least 80%, to the securities that comprise its underlying index. These investments are selected to ensure that the fund's performance closely parallels the economic characteristics of these component securities, thereby aiming to replicate the index's performance.
Its investment approach is centered on a free float-adjusted market capitalization-weighted index. This underlying index is meticulously constructed to measure the performance across large-, mid-, and small-cap segments of the Mexican equity market, offering a broad exposure to its investors.
Unlike diversified funds, this investment vehicle takes a concentrated approach by investing more significantly in fewer assets. This strategy is designed for investors seeking potentially higher returns that come with higher risk, owing to the focused nature of its investments within the Mexican equity market.