Mexico ETF

Unfortunately Mexico is making more headlines with corruption practices and criminal activities then with fine business opportunities. Just like other Latin American countries the national economy of Mexico is not a stable one, sometimes reflecting a ride in a rollercoaster. But riding rollercoasters may also be fun.

Besides, I myself am not that negative for the long term opportunities of Mexico. Compared to other Latin American countries Mexico has some real assets to offer. First and foremost its geographically location, adjacent to The United States, is a considerable advantage for Mexico.

With lower wages than the US many American companies heavily invest in Mexico to reap the benefits of low production costs. Exporting goods to the United States is cheap and swift. Besides its ideal location Mexico is also abundant with basic materials, oil, gas and silver are the main assets here.

Mexico is the largest exporter of silver in the world. The combination of basic materials, investments form US companies and exports to the US and Canada provide sound foundations for the Mexican economy.

On the other hand, looking back, Mexico has often proven to take too many risks in good times landing the economy hard. That also offers opportunities for smart investors. Waiting for the same mistakes to happen again, then entering the market and making the ride upwards, will be a proven way of smart investing.

I myself love investing in a Mexico ETF because things either go extremely well or extremely bad. For me that is an ideal situation for entries and exits.

iShares MSCI Mexico Capped UCITS ETF

A very interesting aspect of this iShares Mexico ETF is that the financial sector is not taking up the largest share of it. Consumer goods dominate here. Basic and luxury consumer goods take up 40% of this iShares MSCI Mexico ETF which is an impressive share compared to other regional ETF’s.

Telecommunications take up 20% which also is a large share especially when you realize that this 20% is scooped up by only 1 single company, the giant America Movil of Carlos Slim. A number of American companies also have Mexican branches that are included in this Mexico ETF. Coca Cola, Walmart and Kimberly-Clark are examples of US companies included in this regional ETF.

This regional iShares Mexico ETF is a physical ETF so stocks have to be bought by iShares. Dividends are not paid out which means that dividends accumulate in this particular ETF.

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