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 | 27 (30/06/17) |
The MSCI Mexico index tracks large and mid cap stocks in Mexico. |
MSCI Mexico Capped |
Mexico | 2 ETFs | 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. |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| db x-trackers MSCI Mexico Index UCITS ETF (DR) 1CLU0476289466 | 67 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI Mexico Capped UCITS ETF (Acc)IE00B5WHFQ43 | 47 | 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 | 3.02% | 9.04% | 20.59% | 16.81% | 12.64% | |
| MSCI Mexico Capped | 3.18% | 9.28% | 20.63% | 17.00% | 12.95% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI Mexico | 21.30% | 9.03% | -10.66% | -4.41% | -3.20% | |
| MSCI Mexico Capped | 21.46% | 8.92% | -10.51% | -4.29% | -2.61% |
Source: justETF.com; As of 31/07/17; Calculations in GBP 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) | 17.00% |
| 2 | HSBC MSCI Mexico Capped UCITS ETF USD | 16.94% |
| 3 | db x-trackers MSCI Mexico Index UCITS ETF (DR) 1C | 16.81% |
The cheapest Mexico ETFs
by total expense ratio (TER)
| 1 | HSBC MSCI Mexico Capped UCITS ETF USD | 0.60% p.a. |
| 2 | db x-trackers MSCI Mexico Index UCITS ETF (DR) 1C | 0.65% p.a. |
| 3 | iShares MSCI Mexico Capped UCITS ETF (Acc) | 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 1 emerging markets index, which is 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: 25.25% (28/02/2017) |
5 ETFs | 115 (30/06/17) |
The MSCI Emerging Markets Latin America index tracks the equity markets of emerging markets in Latin America.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Lyxor MSCI EM Latin America UCITS ETF C-EURFR0010410266 | 120 | 0.65% p.a. | Accumulating | France | Unfunded swap | |
| db x-trackers MSCI EM Latin America Index UCITS ETF 1CLU0292108619 | 90 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi ETF MSCI EM Latin America UCITS ETF USDFR0011018324 | 32 | 0.20% p.a. | Accumulating | France | Unfunded swap | |
| HSBC MSCI EM Latin America UCITS ETF USDIE00B4TS3815 | 13 | 0.60% p.a. | Distributing | Ireland | Full replication | |
| SPDR MSCI EM Latin America UCITS ETFIE00B454X613 | 6 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Latin America | 6.49% | 3.89% | 5.18% | 17.86% | 9.13% |
| Index | 2017 in % |
2016 in % |
2015 in % |
2014 in % |
2013 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Latin America | 11.03% | 56.31% | -28.21% | -7.53% | -16.15% |
Source: justETF.com; As of 31/07/17; Calculations in GBP based on the largest ETF of the respective index.