iShares MSCI Mexico ETF

EWW

Market cap $2.61B

iShares MSCI Mexico ETF offers liquid, diversified exposure to Mexican equities, benefiting from nearshoring and North American economic integration. EWW is fairly valued at a 13.95x P/E, slightly above its 10-year average, and trades at a discount to broader emerging markets. Key upside drivers include continued FDI inflows, Banxico's easing cycle, and a positive 2026 USMCA review outcome.

Political and economic tensions, domestic headlines, currency flows and the Federal Reserve have all combined to reignite the “United States vs. international” investing debate.

Mexico has rallied sharply this year. That has changed the risk profile for the iShares MSCI Mexico ETF heading into 2026. U.S.-Mexico trade relations remain robust, but USMCA renegotiations and shifting U.S.-China dynamics are risks to the reshoring thesis next year. I believe the near-term catalysts for the Mexican ETF have largely played out, and I prefer individual Mexican stocks for ongoing exposure in that market.

Mexico's President Claudia Sheinbaum has sweet-talked U.S. President Donald Trump while Canadian Prime Minister Mark Carney has used tougher talk. Both markets have outperformed.

Alastair Pinder, HSBC Head of EM/Global Equity Strategist, joins 'Closing Bell Overtime'  to talk the growth in emerging markets.

The U.S. market is starting to show bubble characteristics, shifting focus to international opportunities for better value. EWW's current P/E ratio (~17x) is more moderate compared to global markets but not cheap given emerging market risks. The dividend yield (TTM) at 3.97% looks appealing but has historically been volatile—expect fluctuations tied to currency exchange rates and market conditions.

EWW and FLMX have delivered strong YTD returns, outperforming the S&P 500 and ranking highly among international ETFs. Both funds are heavily concentrated in a few sectors and top holdings, with similar performance and minimal cost differences. Mexican equities face valuation concerns, currency tailwinds may reverse, and their long-term track record lags US stocks significantly.

President Trump imposes new 30% tariffs on Mexican and EU imports effective August 1, warning that any retaliatory measures will be matched and added to the base rate

President Donald Trump on Saturday announced 30% tariffs on the European Union and on Mexico, cementing a new high level of levies with key trading partners ahead of an Aug. 1 implementation.

President Donald Trump announced Saturday his administration is imposing 30% tariffs on imports from the European Union and Mexico, hiking up the tariff rate for two of the U.S.'s biggest trading partners despite lengthy negotiations.