Mexico is an exceptional market to focus your investment dollars in, and investing in a Mexico ETF is a wonderful way to do so. You may want to diversify into international markets while still staying in a market that you are already rather familiar with. You may also want to invest in a market whose economy is closely linked to the United States. After all, the American economy is on an upswing because of the recovery from the last recession, and Mexico is taking advantage of this upswing as well.
More than 80 percent of Mexico’s exports go to the United States and Canada because of the NAFTA trade agreement, so you can see that this is a wonderful option to invest in. A Mexican ETF, or an exchange traded fund, works in a similar way as stocks or mutual funds. The Mexican peso ETF invests in corporate stocks as well as various bonds and other investments in the Mexican economy.
You may be wondering what kind of return you can expect when you invest in the top performing ETFs in Mexico as well as what some of the best investment options are. A closer look at the top ETFs available in Mexico can help you to determine how to invest your funds wisely.
What Are the Best Performing ETFs in Mexico?
1. Ultra MSCI Mexico Capped ETF (UMX)
The Ultra MSCI Mexico Capped ETF is an excellent option to consider. This diverse fund has already garnered more than a 36 percent return for its investors this year, and it is poised to continue gaining.
This is a leveraged investment that has solid holdings in Fomento Economico Mexicano SAB, Grupo Financiero Banorte SAB, CEMEX SAB and others. In addition, it has competitive fees to help you enjoy a greater overall return on investment into this Mexico ETF. With a great track record in recent years, you can tell that this is a well-managed fund that you can likely continue to expect fabulous returns from in the months and years to come.
2. iShares MSCI Mexico Capped ETF (EWW)
This Mexico ETF is considerably larger than the UMX fund, and it has enjoyed a return of more than 18 percent this year. iShares MSCI Mexico Capped ETF is an equity fund that has solid holdings in America Movil SAB, Fomento Economico Mexicano SAB, Wal Mart de Mexico SAB and several dozen other investment options for incredible diversification.
Like the UMX fund, this fund also has low fees. While its return is exceptionally lower than the previous ETF listed, it provides you with a cost-effective way to diversify your portfolio across various ETFs.
3. Deutsche X-trackers MSCI Mexico Hedged Fund Equity ETF (DBMX)
The Deutsche X-trackers MSCI Mexico Hedged Fund equity ETF is another excellent choice to consider when searching for a Mexico ETF to purchase. This is an affordable equity fund that you can invest in, and its nominal fees make it a top contender for most portfolios. It has 61 holdings currently, and some of these include America Movil SAB, Grupo Televiso SAB, Fomento Economico Mexicano SAB and more.
While the Deutsche X-trackers MSCI Mexico Hedged Fund equity ETF has only generated a five percent return for its investors so far this year, it is poised to take off soon to create a great profit for investors. As is the case when buying stocks, it is best to invest in ETFs at a lower price so that you can benefit when the price per share takes off. With this in mind, this fund may be at the top of your list of contenders.
4. iShares Currency Hedged MSCI Mexico Capped IMI ETF (HEWW)
The iShares Currency hedged MSCI Mexico Capped IMI ETF is a Mexican peso ETF that savvy investors should keep an eye on. This Mexico ETF has only generated a three percent recent so far this year, so it may be ready to shoot upward soon.
Keep in mind that it has low fees and a solid mix of investments that may produce a great return. This blend class asset holds investments in other ETFs, and this gives you an excellent way to stay truly diversified while making solid investments in the robust Mexico economy.
5. Ultrashort MSCI Mexico Capped IMI ETF (SMK)
If you are looking for a great deal on a Mexico ETF with an affordable price per share, the Ultrashort MSCI Mexico Capped IMI ETF is the right option for you. This ETF has generated a substantial loss for investors so far this year, but now may be a great time to buy shares of this fund at a low point to get a discount on shares.
Ultrashort MSCI Mexico Capped IMI ETF is a leveraged equities fund that has 71 total investments, and some of these include America Movil SAB, Grupo Mexico SAB de CV, Fomento Economico Mexicano SAB, Alfa SAB de CV and others. With its broad exposure in companies across the Mexican economy, this fund provides you with an exceptional way to take advantage of the country’s excellent growth.
6. SPDR MSCI Mexico Quality Mix ETF (QMEX)
This popular Mexico ETF is closely linked to the performance of the MSCI Mexico Quality Mix-A Series Index, which has been performing well in recent years. With an expense ratio of approximately 0.4 percent and with a dividend of 1.03 percent, you can easily make money with SPDR MSCI Mexico Quality Mix ETF. It has dozens of holdings, and some of its top holdings include Arca Continental SAB and Group Financiero Banorte.
While there are many ways that you could invest in Mexico, it makes sense to invest your money in a professionally managed fund that has widespread exposure with interests in various stocks and bonds.
A Mexico bond ETF or another type of ETF may be the ideal solution for investors to consider when looking for top-performing international investments. It is wise to speak with a financial advisor or expert regarding international investment opportunities. Look for an expert who has considerable experience with top performing Mexican ETfs for the best results.