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 | 26 (29/12/17) |
The MSCI Mexico index tracks large and mid cap stocks in Mexico.
Index factsheet |
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.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI Mexico Index UCITS ETF 1CLU0476289466 | 66 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI Mexico Capped UCITS ETF (Acc)IE00B5WHFQ43 | 37 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| HSBC MSCI Mexico Capped UCITS ETF USDIE00B3QMYK80 | 8 | 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 | -11.36% | -8.05% | -10.36% | -15.79% | -8.83% | |
| MSCI Mexico Capped | -11.16% | -8.04% | -10.40% | -15.73% | -8.82% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Mexico Capped | -9.98% | 5.18% | 8.92% | -10.51% | -4.29% | |
| MSCI Mexico | -8.57% | 3.55% | 9.03% | -10.66% | -4.41% |
Source: justETF.com; As of 31/05/18; 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) | -15.73% |
| 2 | HSBC MSCI Mexico Capped UCITS ETF USD | -15.75% |
| 3 | Xtrackers MSCI Mexico Index UCITS ETF 1C | -15.79% |
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 1 emerging markets index, which is tracked by 4 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) |
4 ETFs | 110 (29/12/17) |
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 | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI EM Latin America Index Swap UCITS ETF 1CLU0292108619 | 68 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi ETF MSCI Emerging Markets Latin America UCITS ETF - USDLU1681045297 | 55 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI EM Latin America UCITS ETF C-EURFR0010410266 | 52 | 0.65% p.a. | Accumulating | France | Unfunded swap | |
| HSBC MSCI EM Latin America UCITS ETF USDIE00B4TS3815 | 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 Emerging Markets Latin America | -11.61% | -13.12% | -3.76% | -1.02% | 23.42% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Latin America | -7.33% | 11.61% | 56.69% | -28.06% | -7.86% |
Source: justETF.com; As of 31/05/18; Calculations in GBP based on the largest ETF of the respective index.