2024-06-06 10:00:23 ET
Summary
- iShares MSCI Mexico ETF has lost close to 9% of its value on a YTD basis, underperforming global markets.
- Recent election results and the ruling Morena party gaining a supermajority in the house may have negative implications for Mexican stocks.
- Mexico's high crime and corruption rates may limit nearshoring progress, and a potential shift towards populist programs, raise concerns about the fiscal position.
- The valuation backdrop is not appealing either and Mexican stocks look overbought vs its peers from the Latam region.
Introduction
The iShares MSCI Mexico ETF ( EWW ), one of the oldest country-specific ETFs around (a listing history of close to three decades), and $2bn in AUM, is a financial product that offers focused access to 43 Mexican stocks. This year, at a time when global stocks have eked out steady returns of close to double-digits, EWW has turned out to be something of a beacon of volatility, eventually losing close to 9% of its value on a YTD basis....
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For further details see:
EWW ETF: May Not Be Prudent To Buy The Dip