Everything Coming Up Roses For EWW, Mexico Stocks Are A Buy

Jun. 16, 2023 5:34 PM ETiShares MSCI Mexico ETF (EWW)EWW2 Comments

Summary

  • The iShares MSCI Mexico ETF has outperformed the S&P 500 over the last three years, with a 31% total return year-to-date.
  • EWW has a higher dividend yield and a lower price-to-earnings ratio than the S&P 500 but also has added volatility and concentration risk.
  • The ETF's technicals and seasonal tailwinds support continued absolute and relative strength, making it a buy in my view.
  • I outline key levels on the chart to monitor.

Flags are waving on the street of small Mexican town

Oleh_Slobodeniuk/E+ via Getty Images

Not many equity markets have crushed the S&P 500 over the last three years. Mexico, however, sports impressive total returns across multiple timeframes. What's more, you will encounter attractive valuations south of the border along with robust technical momentum.

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