iShares MSCI Mexico ETF

EWW

Market cap $2.1B

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.

Major auto trade groups on ​Thursday urged the Trump ‌administration to extend a free trade deal with ​both Mexico and ​Canada, saying it was ⁠crucial for U.S. ​vehicle production as North ​America faces competition from Asia and Europe.

The board of governors voted 3-2 to reduce the overnight interest-rate target by a quarter of a percentage point to 6.5%, a four-year low.

The U.S. indictment of a Mexican political figure for drug trafficking complicates Claudia Sheinbaum's relationship with the Trump administration.