iShares MSCI Mexico ETF

EWW

Market cap $1.88B

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.

In less than a month, the 2026 FIFA World Cup kicks off across the United States, Canada, and Mexico, running June 11 through July 19, 2026.

Two members of the U.S. House of ​Representatives on Monday will introduce ‌legislation to toughen a U.S. government ban on Chinese ​automakers from entering ​the American market just before ⁠President Donald Trump heads to China ​for talks.

A beneficiary of nearshoring, Mexico is a real economy market with indirect exposure to the AI infrastructure build-out. Recent relative outperformance driven by industrials and materials, with supportive valuations and a rate-cutting cycle.