EWW's Upside Is Limited In A Peak Inflation Scenario

Nov. 07, 2022 1:44 PM ETiShares MSCI Mexico Capped ETF (EWW)


  • EWW is exposed to lots of pretty resilient consumer staple exposures that have kept its head above water.
  • Moreover, the Mexican Peso has been a stalwart currency this last cycle, since it trades closely with the very strong dollar.
  • The issue is that if we are approaching a peak inflation and peak rate moment, the declines in the dollar will also bring down the peso.
  • While resilient, upside from here appears limited.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

Teenage Latin boy holding the Mexican flag outdoors

FG Trade Latin/E+ via Getty Images

Our last call on the iShares MSCI Mexico ETF (NYSEARCA:EWW) was a good one. Dollarization and staple exposures kept EWW above water and outperforming the market by 20% as of today. While we still like

EWW sectors

Sectoral Breakdown (iShares.com)

Thanks to our global coverage we've ramped up our global macro commentary on our marketplace service here on Seeking Alpha, The Value Lab. We focus on long-only value ideas, where we try to find international mispriced equities and target a portfolio yield of about 4%. We've done really well for ourselves over the last 5 years, but it took getting our hands dirty in international markets. If you are a value-investor, serious about protecting your wealth, us at the Value Lab might be of inspiration. Give our no-strings-attached free trial a try to see if it's for you.

This article was written by

Author of The Value Lab
A long-only voice with eclipsing growth through 2020 and 2022 bear markets.

Valkyrie Trading Society seeks to provide a consistent and honest voice through this blog and our Marketplace Service, the Value Lab, with a focus on high conviction and obscure developed market ideas.

DISCLOSURE: All of our articles and communications, including on the Value Lab, are only opinions and should not be treated as investment advice. We are not investment advisors. Consult an investment professional and take care to do your own due diligence.

DISCLOSURE: Some of Valkyrie's former and/or current members also have contributed individually or through shared accounts on Seeking Alpha. Currently: Guney Kaya contributes on his own now, and members have contributed on Mare Evidence Lab.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You


To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.