ETF Research and Analysis

by Patricia Oey
Suitability
IShares MSCI Mexico Capped EWW is suitable for use as a satellite holding to gain exposure to a country that is currently undertaking significant reforms that could potentially support stronger gross domestic product growth   Read more 

Bull Case

The fund's holdings in many high-quality consumer names provides good exposure to Latin America's rising middle class.
The Mexican government estimates that planned energy reforms, which would result in additional investment and exploration and production, could add 1 percentage point of GDP growth in the medium term.
While neighboring economies have been negatively affected by China's slowing demand for commodities, Mexico has benefited from its closer economic ties to a recovering U.S. economy. Read more 

Bear Case

Valuations for Mexican stocks are near all-time highs, reflecting the global investment community's optimism that recent and planned reforms will unlock Mexico's unrealized potential. Failure to meet expectations could put pressure on Mexican stocks.
This fund has historically not offered significant diversification benefits, as Mexico's economy has strong links to the U.S. economy. Read more 

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