Franklin FTSE Mexico ETF

FLMX

Market cap $67.1M

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 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.

The U.S. will charge a 30% tariff on the European Union and Mexico effective Aug. 1, President Trump said in letters to the leaders of each trading partner, posted on Truth Social on Saturday morning.

The president made the announcement on social media, even as the EU was hoping for a trade agreement

President Donald Trump revealed the new rates in letters to European Commission President Ursula von der Leyen and Mexico's president Claudia Sheinbaum.

FLMX, despite an attractive chart and lower expense ratio, underperforms compared to EWW, which has a stronger history and larger backing from iShares. EWW's similar characteristics, better performance, and higher dividend yield make it a more appealing investment than FLMX in the Mexican stock market. FLMX's smaller size, lower trading volume, and lack of first-mover advantage are significant drawbacks despite its solid portfolio and sector tilts.

Exchange-traded funds that track Mexican equities were on track to suffer their biggest daily decline in nearly four years on Monday, after Claudia Sheinbaum's victory in Mexico's presidential election sparked investor concerns that her party's landslide win could lead to constitutional changes.

Mexico benefits from China's trade dispute with the U.S. Is China still the world's manufacturer? How global trade is changing.

China and Hong Kong markets had a humbling 2023 with equities down more than 10%. Beijing has also begun stepping up tourism and travel promotions, granting visa-free entry to 11 countries, with Singapore and Thailand the latest to be included.