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 around 23%.
Performance of Mexican stocks (MSCI Mexico)
Indices in comparison
The best indices for ETFs on Mexico
For an investment in the Mexican stock market, there are 2 indices available which are tracked by 3 ETFs. 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 | 24 (30/09/20) |
The MSCI Mexico index tracks large and mid cap stocks in Mexico.
Index factsheet |
MSCI Mexico Capped |
Mexico | 2 ETFs | 24 (31/08/20) |
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 | |
|---|---|---|---|---|---|---|
| iShares MSCI Mexico Capped UCITS ETF (Acc)IE00B5WHFQ43 | 53 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers MSCI Mexico UCITS ETF 1CLU0476289466 | 40 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI Mexico Capped UCITS ETF USDIE00B3QMYK80 | 10 | 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 | 0.00% | 0.98% | 16.23% | -26.84% | -39.37% | |
| MSCI Mexico Capped | 0.25% | 1.35% | 15.96% | -26.67% | -39.30% |
| Index | 2020 in % |
2019 in % |
2018 in % |
2017 in % |
2016 in % |
|
|---|---|---|---|---|---|---|
| MSCI Mexico | -30.63% | 9.62% | -14.13% | 8.49% | -7.42% | |
| MSCI Mexico Capped | -30.51% | 8.83% | -15.22% | 10.59% | -7.46% |
Source: justETF.com; As of 30/09/20; Calculations in CHF based on the largest ETF of the respective index.
The best Mexico ETFs
by 1 year return
| 1 | iShares MSCI Mexico Capped UCITS ETF (Acc) | -26.67% |
| 2 | HSBC MSCI Mexico Capped UCITS ETF USD | -26.72% |
| 3 | Xtrackers MSCI Mexico UCITS ETF 1C | -26.84% |
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 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 3 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 0.74% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Emerging Markets Latin America | Latin America
Mexico: 23.22% (29/05/2020) |
4 ETFs | 107 (30/09/20) |
The MSCI Emerging Markets Latin America index tracks the equity markets of emerging markets in Latin America.
Index factsheet |
| MSCI Emerging Markets Latin America 10/40 | Latin America
Mexico: 23.22% (29/05/2020) |
1 ETF | 107 (30/09/20) |
The MSCI Emerging Markets Latin America 10/40 index tracks the equity markets of emerging markets in Latin America. The imbedded 10/40 rule limits the weight of a single company to 10% of the index. The sum of all companies with weights between 5% and 10% is limited to 40%.
Index factsheet |
| S&P SMIT 40 | Emerging Markets
Mexico: 22.90% (29/05/2020) |
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 | |
|---|---|---|---|---|---|---|
| iShares MSCI EM Latin America UCITS ETF (Dist)IE00B27YCK28 | 170 | 0.74% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets Latin America UCITS ETF EUR (C)LU1681045024 | 103 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi ETF MSCI Emerging Markets Latin America UCITS ETF USDLU1681045297 | 38 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI EM Latin America UCITS ETF - AccLU1900066629 | 38 | 0.65% 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 UCITS ETFLU0860821874 | 3 | 0.58% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Latin America 10/40 | -5.99% | -4.27% | 12.51% | -35.07% | -36.29% | |
| MSCI Emerging Markets Latin America | -6.36% | -4.24% | 12.38% | -35.05% | -35.99% | |
| S&P SMIT 40 | -3.20% | -4.05% | 13.50% | -21.60% | -30.68% |
| Index | 2020 in % |
2019 in % |
2018 in % |
2017 in % |
2016 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Latin America | -39.99% | 14.43% | -5.91% | 18.00% | 33.30% | |
| MSCI Emerging Markets Latin America 10/40 | -38.62% | 12.98% | -6.45% | 17.80% | 33.14% | |
| S&P SMIT 40 | -24.96% | 13.68% | -21.39% | 25.92% | 9.66% |
Source: justETF.com; As of 30/09/20; Calculations in CHF based on the largest ETF of the respective index.