- EWW is a popular Mexican equity tracker with circa $1 billion in assets under management. The largest sector exposure is Consumer Staples.
- Both consumer and business sentiment appear to remain weak in Mexico, while growth has been lackluster for an emerging market.
- While Mexican equities have the potential to find cyclical out-performance at some point in the future, the time does not appear to be now.
- I can construct an argument for the potential for a stronger Mexican peso, but this is likely to place further pressure on the Mexican economy.
- It would be better to exploit any possible FX opportunity directly. EWW is designed to express a 'long' view on Mexican business, and there is little reason to not believe in continued under-performance from Mexico.
For further details see:
EWW: Mexican Equities Still Look Unattractive As Domestic Sentiment Remains Weak