EWW Benefits From Implicit Dollarization And Staple Exposure


  • Mexico has lower inflation at the cost of austerity, but a consumer staple-dependent EWW ETF is better exposed than most to worse spending conditions.
  • Implicit dollarization of the Mexican Peso protects American investors from excessive FX risk.
  • The economy depends on remittance, and the state of the US economy is important, and this is where risks lie.
  • Perhaps with limited YTD declines in line with US averages that seem high to us, EWW has directional troubles, but it trades at a fraction of the multiple of US indices.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

Historical Landmark National Palace Building at Plaza de la Constitucion in Mexico City, Mexico

R.M. Nunes

The iShares MSCI Mexico ETF (NYSEARCA:EWW) is idiosyncratic but an interesting geographical ETF that could make sense in the current environment due to exposures to consumer staples. While for US investors there is some logic to a Mexico

EWW holdings

Top Holdings EWW (iShares.com)

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