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 25%.
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 | 24 (30.06.20) |
The MSCI Mexico index tracks large and mid cap stocks in Mexico.
Index factsheet |
MSCI Mexico Capped |
Mexico | 2 ETFs | 25 (30.06.20) |
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 EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Mexico Capped UCITS ETF (Acc)IE00B5WHFQ43 | 42 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers MSCI Mexico UCITS ETF 1CLU0476289466 | 34 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI Mexico Capped UCITS ETF USDIE00B3QMYK80 | 7 | 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 | -0.70% | 13.56% | -28.94% | -24.42% | -36.87% | |
| MSCI Mexico | -0.69% | 13.94% | -28.86% | -24.34% | -36.87% |
| Index | 2020 in % |
2019 in % |
2018 in % |
2017 in % |
2016 in % |
|
|---|---|---|---|---|---|---|
| MSCI Mexico Capped | -29.99% | 13.00% | -11.96% | 1.50% | -6.63% | |
| MSCI Mexico | -29.90% | 13.35% | -10.43% | -0.51% | -6.62% |
Source: justETF.com; As of 30.06.20; Calculations in EUR based on the largest ETF of the respective index.
The best Mexico ETFs
by 1 year return
| 1 | Xtrackers MSCI Mexico UCITS ETF 1C | -24.34% |
| 2 | iShares MSCI Mexico Capped UCITS ETF (Acc) | -24.42% |
| 3 | HSBC MSCI Mexico Capped UCITS ETF USD | -24.49% |
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 2 emerging markets indices, which are tracked by 5 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: 20.06% (31/12/2019) |
4 ETFs | 107 (30.06.20) |
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: 24.20% (31/12/2019) |
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 EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Amundi MSCI Emerging Markets Latin America UCITS ETF EUR (C)LU1681045024 | 114 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI EM Latin America Swap UCITS ETF 1CLU0292108619 | 45 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI EM Latin America UCITS ETF - AccLU1900066629 | 37 | 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 | 4.16% | 16.38% | -35.68% | -32.05% | -20.27% | |
| S&P SMIT 40 | 6.07% | 17.39% | -19.67% | -12.31% | -23.74% |
| Index | 2020 in % |
2019 in % |
2018 in % |
2017 in % |
2016 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Latin America | -36.02% | 18.84% | -2.36% | 8.26% | 34.59% | |
| S&P SMIT 40 | -20.15% | 17.58% | -18.07% | 15.57% | 10.42% |
Source: justETF.com; As of 30.06.20; Calculations in EUR based on the largest ETF of the respective index.