
Brazil, Mexico Provide Safe Haven Amid Middle East Tumult: Charts
ETFs tracking Brazil and Mexico are showing encouraging technical indicators.

ETFs tracking Brazil and Mexico are showing encouraging technical indicators.

iShares MSCI Mexico ETF offers liquid, diversified exposure to Mexican equities, benefiting from nearshoring and North American economic integration. EWW is fairly valued at a 13.95x P/E, slightly above its 10-year average, and trades at a discount to broader emerging markets. Key upside drivers include continued FDI inflows, Banxico's easing cycle, and a positive 2026 USMCA review outcome.

Abbington Investment Group purchased a new stake in shares of iShares MSCI Mexico ETF (NYSEARCA:EWW) in the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 31,193 shares of the exchange traded fund's stock, valued at approximately $2,128,000.

B. Riley Wealth Advisors Inc. purchased a new position in iShares MSCI Mexico ETF (NYSEARCA:EWW) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 20,555 shares of the exchange traded fund's stock, valued at approximately $1,245,000. B. Riley Wealth Advisors

iShares MSCI Mexico ETF (NYSEARCA:EWW - Get Free Report) saw unusually large options trading activity on Monday. Traders purchased 57,371 call options on the company. This is an increase of approximately 5,649% compared to the average volume of 998 call options. iShares MSCI Mexico ETF Trading Down 0.3% Shares of EWW stock opened at $70.48

Mexico has rallied sharply this year. That has changed the risk profile for the iShares MSCI Mexico ETF heading into 2026. U.S.-Mexico trade relations remain robust, but USMCA renegotiations and shifting U.S.-China dynamics are risks to the reshoring thesis next year. I believe the near-term catalysts for the Mexican ETF have largely played out, and I prefer individual Mexican stocks for ongoing exposure in that market.

Baker Avenue Asset Management LP lifted its stake in shares of iShares MSCI Mexico ETF (NYSEARCA:EWW) by 10.3% during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 352,648 shares of the exchange traded fund's stock after buying an additional

Bank of Montreal Can bought a new position in iShares MSCI Mexico ETF (NYSEARCA:EWW) in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 1,504 shares of the exchange traded fund's stock, valued at approximately $91,000. Several other hedge funds and other institutional

The U.S. market is starting to show bubble characteristics, shifting focus to international opportunities for better value. EWW's current P/E ratio (~17x) is more moderate compared to global markets but not cheap given emerging market risks. The dividend yield (TTM) at 3.97% looks appealing but has historically been volatile—expect fluctuations tied to currency exchange rates and market conditions.

EWW and FLMX have delivered strong YTD returns, outperforming the S&P 500 and ranking highly among international ETFs. Both funds are heavily concentrated in a few sectors and top holdings, with similar performance and minimal cost differences. Mexican equities face valuation concerns, currency tailwinds may reverse, and their long-term track record lags US stocks significantly.

President Donald Trump on Saturday announced 30% tariffs on the European Union and on Mexico, cementing a new high level of levies with key trading partners ahead of an Aug. 1 implementation.

President Donald Trump announced Saturday his administration is imposing 30% tariffs on imports from the European Union and Mexico, hiking up the tariff rate for two of the U.S.'s biggest trading partners despite lengthy negotiations.

Donald Trump has announced he will impose a 30% tariff on imports from the European Union from August.

Mexico offers strong equity returns, but significant political, economic, and security risks require careful consideration before investing. The MSCI Mexico Index and iShares MSCI Mexico ETF outperform the S&P 500 in returns, but both carry much higher volatility and weaker risk-adjusted metrics. I rate EWW as a Hold due to its high volatility; it's suitable only for investors who can stomach large swings for potential outperformance.

EWW offers broad exposure to Mexico's stock market, but is highly concentrated in a few sectors and top-heavy in holdings. Mexico's macro outlook is clouded by US tariffs, political uncertainty, and heavy reliance on US trade and remittances. Recent performance is driven more by speculation than fundamentals, with technicals signaling potential for significant downside risk.

Cinco de Mayo, meaning the fifth of May in Spanish, is a day of gratification for all Mexicans. The day honors the Mexican army's incredible victory over the French militia in the Battle of Puebla in 1862.

The Mexican stock market, as represented by EWW, has managed to beat the S&P 500 by almost 50 percent over the past 25 years. Mexico's economy has very significant structural advantages, mainly resulting from proximity to the U.S. EWW's holdings tend to be very high-quality businesses, and I believe that the ETF is structured better than many other single-country emerging market funds.

President Trump's tariff announcement caused a market shock, but the iShares MSCI Mexico ETF surged 4%, outperforming the S&P 500 by 9 percentage points. EWW offers a compelling valuation with a P/E of 10.5 and a PEG ratio near 1.0, indicating tremendous value. The ETF's portfolio is well-positioned with significant weights in Consumer Staples and Materials sectors, that have performed well in 2025.

Topping the list and outperforming in that span have been emerging market countries like Brazil and India, which are both up well over 6.5%. International ETFs don't only have momentum on their side, but they also offer higher yields than the US at the current moment. Across all 22 ETFs, the average yield stands at 3.25%.

Our emerging markets watchlist tracks nine indexes from emerging economies around the world. Emerging markets are countries with economies in the process of rapid growth and industrialization.