ETF selected: Xtrackers MSCI Mexico UCITS ETF 1C

What's in this ETF?

The selected ETF covers around 85% of the Mexican stock market. It is invested in 26 large- and mid-cap companies. These include financial companies Grupo Financiero Banorte (14.1%), Fomento Económico Mexicano (13%) and Grupo Financiero Inbursa (2.9%), telecommunications company America Movil (9%), mining group Grupo México (9.4%), Walmart de México (9.4%), construction materials giant Cemex (6.9%), airport operatorsroport operators Grupo Aeroportuario Del Pacifico (3.2%) and Grupo Aeroportuario Del Surest (2.9%), and food company Grupo Bimbo (3.2%).

Exports from China and Mexico to the United States.

By purchasing this ETF, investors are mainly exposed to the basic necessities sector (36.1%), materials (18.8%), financials (18.6%) and manufacturing (12.4%).

The United States' main trading partners (source: Bloomberg)

What are its advantages?

  • The ETF provides well-diversified exposure to the major companies in the Mexican economy.
  • Mexico should continue to take advantage of its good relations with the United States to increase exports to the world's leading economy. The ETF has gained 166% since April 2020.
  • The amount outstanding is not gigantic, but it is sufficient to ensure good liquidity ($270 million).

More negative points

  • The ETF is invested in Peso. As a result, currency risk should not be overlooked.
  • Management fees are fairly high (0.65%).

The ETF's identity card :

Number of positions: 26

ISIN code: LU04766289466

Ticker: D5BI

Fees: 0.65


You can find this ETF on MarketScreener.