How to invest in Mexico using ETFs
How do I invest in Mexican stocks?
The easiest way to invest in the whole Mexican stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the Mexican stock market you find 2 indices, which are tracked by ETFs.
Alternatively, you can consider indices on Emerging Markets. These indices weight Mexico with up to 28%.
Performance of Mexican stocks (MSCI Mexico)
Indices in comparison
The best indices for ETFs on Mexico
For an investment in the Mexican stock market, 2 indices tracked by 3 ETFs are available. On the MSCI Mexico index there is 1 ETF. On the MSCI Mexico Capped index there are 2 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.60% p.a. and 0.65% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
MSCI Mexico |
Mexico | 1 ETF | 25 (31/08/18) |
The MSCI Mexico index tracks large and mid cap stocks in Mexico.
Index factsheet |
MSCI Mexico Capped |
Mexico | 2 ETFs | 25 (31/08/18) |
The MSCI Mexico Capped index tracks large and mid cap stocks in Mexico. Index concentration is limited by maximum weights for sector, geography and constituents.
Index factsheet |
| ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI Mexico Index UCITS ETF 1CLU0476289466 | 87 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI Mexico Capped UCITS ETF (Acc)IE00B5WHFQ43 | 66 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| HSBC MSCI Mexico Capped UCITS ETF USDIE00B3QMYK80 | 11 | 0.60% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Mexico Capped | -5.11% | 12.86% | 4.71% | -9.71% | 1.88% | |
| MSCI Mexico | -5.19% | 12.83% | 4.63% | -9.52% | 2.15% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Mexico Capped | 1.26% | 10.59% | -7.46% | -14.42% | 0.35% | |
| MSCI Mexico | 3.26% | 8.49% | -7.42% | -14.39% | 0.19% |
Source: justETF.com; As of 31/08/18; Calculations in CHF based on the largest ETF of the respective index.
The best Mexico ETFs
by 1 year return
| 1 | Xtrackers MSCI Mexico Index UCITS ETF 1C | -9.52% |
| 2 | HSBC MSCI Mexico Capped UCITS ETF USD | -9.68% |
| 3 | iShares MSCI Mexico Capped UCITS ETF (Acc) | -9.71% |
The cheapest Mexico ETFs
by total expense ratio (TER)
| 1 | HSBC MSCI Mexico Capped UCITS ETF USD | 0.60% p.a. |
| 2 | iShares MSCI Mexico Capped UCITS ETF (Acc) | 0.65% p.a. |
| 3 | Xtrackers MSCI Mexico Index UCITS ETF 1C | 0.65% p.a. |
Emerging markets indices with a share of Mexico
Besides Mexico ETFs you may consider investing in emerging markets ETFs. In total, you can invest in 2 emerging markets indices, which are tracked by 6 ETFs. The total expense ratio (TER) of ETFs on emerging markets is between 0.20% p.a. and 0.65% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Emerging Markets Latin America | Latin America
Mexico: 24.89% (28.02.2017) |
5 ETFs | 108 (31/08/18) |
The MSCI Emerging Markets Latin America index tracks the equity markets of emerging markets in Latin America.
Index factsheet |
| S&P SMIT 40 | Emerging Markets
Mexico: 22.30% (28.02.2017) |
1 ETF | 40 |
The S&P SMIT 40 index tracks the 40 leading companies in four emerging markets: South Korea, Mexico, Indonesia and Turkey. Every September the weight of each country is rebalanced to 25%.
Index factsheet |
| ETF ISIN |
Fund size in m CHF |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Amundi MSCI Emerging Markets Latin America UCITS ETF - EUR (C)LU1681045024 | 179 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI EM Latin America Index Swap UCITS ETF 1CLU0292108619 | 86 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI EM Latin America UCITS ETF C-EURFR0010410266 | 67 | 0.65% p.a. | Accumulating | France | Unfunded swap | |
| Amundi ETF MSCI Emerging Markets Latin America UCITS ETF - USDLU1681045297 | 63 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI EM Latin America UCITS ETF USDIE00B4TS3815 | 14 | 0.60% p.a. | Distributing | Ireland | Full replication | |
| ComStage S&P SMIT 40 Index TRN UCITS ETFLU0860821874 | 4 | 0.60% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| S&P SMIT 40 | -8.20% | -9.01% | -16.90% | -18.82% | 13.70% | |
| MSCI Emerging Markets Latin America | -10.38% | -4.86% | -16.54% | -11.59% | 28.50% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| S&P SMIT 40 | -20.13% | 25.92% | 9.66% | -20.78% | 16.21% | |
| MSCI Emerging Markets Latin America | -11.83% | 18.00% | 33.30% | -31.00% | -2.90% |
Source: justETF.com; As of 31/08/18; Calculations in CHF based on the largest ETF of the respective index.