iShares MSCI Mexico ETF

EWW

Valor de mercado US$ 1,48 bi

The iShares MSCI Mexico ETF, which covers 39 stocks, has underperformed its EM peers and global stocks this year. EWW's portfolio has shifted toward materials, led by Grupo Mexico B, now at a 16% weight, and is benefiting from strong copper sector conditions. Despite a Q2 Mexican GDP rebound, forward-looking business and consumer confidence remain weak, and monetary easing tailwinds have faded.

The central bank's board voted unanimously to keep the overnight interest-rate target at 6.5%, and and reiterated its expectation that it will stay on hold for the foreseeable future.

Mexico's stock gains are holding despite the country's dependency on exports to the U.S., and the two leaders' discourse turning from warm to prickly.

Trump and US officials opted to keep USMCA alive on short leash of annual reviews rather than longer term renewal

The action keeps the trade agreement alive but subjects it to annual reviews.

Although not uniform across the region, a number of Latin American equity markets have outperformed the S&P 500 year to date (YTD). Emerging markets in Peru, Colombia, Brazil, and elsewhere have all beaten the S&P's 9% YTD returns, thanks to a combination of factors, including higher prices for certain commodities, growing AI-related demand for outputs such as copper, lithium, and nickel, and favorable company valuations.

The Trump administration's trade agency ‌said on Wednesday it will kick off the first of three negotiating rounds with Mexico this week to revamp the North American trade agreement, but made no mention of any talks with Canada.

I am revisiting the iShares MSCI Mexico ETF (EWW), which has outperformed the S&P 500 and maintained strong momentum into 2026. EWW benefits from the U.S. increasing reliance on Mexican supply chains, especially as import origins shift away from China. Geopolitical risks at the U.S.-Mexico border have not materially impacted goods flow, supporting EWW's continued strength.

The U.S.-Mexico-Canada Agreement, or USMCA, affects $2 trillion in trade and is crucial for all three economies.

Exports of manufactured goods increased by 34% to $65.69 billion, mining exports rose 71% to $2.08 billion, and agricultural exports edged up 0.1% to $2.23 billion.