The iShares MSCI Mexico Capped exchange-traded fund (ETF) has been getting quite a bit of attention in the news lately,attracting more than $1.4 billion in net inflows through the beginning of April. This is in stark contrast to the iShares MSCI Brazil ETF,which has seen outflows reaching upwards of $236 million since 2012.
“Fund investors keep pouring money into Mexico’s white-hot stock market,joining a rush to embrace sweeping economic reforms ushered in by a new government,” writes The Wall Street Journal. “The country’s stock market is trading at a forward price-earnings ratio of around 17,as compared to Brazil’s multiple of 11.”
According to the report,Ben Marks,chief investment officer at Marks Group Wealth Management said,“Mexico’s transition into a more competitive marketplace for foreign investors is looking better and better.” This is due in large part to the nation’s rich natural resources and close ties with the U.S. In addition,Mexico’s market success has been tied to the strength and stability of its consumer-staples stocks,which are increasingly prized by investors for their defensive role.
Regardless,Mexico real estate and the nation’s stock market are definitely experiencing a serious and sustained upswing. Since Enrique Peña Nieto won Mexico’s presidential election in 2012,shares of the MSCI Mexico ETF have jumped by upwards of 20 percent,which is more than twice the amount of any other comparable investment vehicles that can be found among the world’s emerging markets.
As the second largest economy in Latin America and one of the world’s strongest economies in 2012,Mexico’s strength is also reinforced by its growing domestic consumption,high level of foreign direct investment and strong banking system. In addition,the nation’s competitive manufacturing cost,open economy and low debt level in both the private and public sectors have left Mexico well poised for future growth.
Check our Investors section in here so you can also invest in Mexico real estate.