Posted on by Micah McDonald

The Mexico ETF – A Single Country Fund With A Good 22-Year Track Record (EWW) 1.2

  • A single country fund with a good 22-year track record
  • An emerging market ETF that has kept up with the returns of an S&P 500 index fund for over 2 decades
  • This fund provides a dividend that is currently 24% higher than the most popular S&P 500 ETF
  • The iShares MSCI Mexico ETF (EWW) has a relatively low correlation coefficient to U.S. Markets of 0.73

EWW vs S&P 500 index fund: May 1996 through September 2018

Source: https://www.portfoliovisualizer.com/

EWW vs SPY: March 22, 1996 through September 29, 2018

Source: https://www.koyfin.com/home

iShares MSCI Mexico ETF objectives:

  • The iShares MSCI Mexico ETF seeks to track the investment results of a broad-based index composed of Mexican equities.
  • Exposure to a broad range of companies in Mexico
  • Targeted access to Mexican stocks

Key facts to know about the iShares MSCI Mexico ETF (EWW):

  • Inception date: March 12, 1996
  • Benchmark index: MSCI Mexico IMI 25/50 Index
  • Net assets: $1,199,605,680
  • Average daily volume: 3,237,730
  • Number of holdings: 57
  • P/E ratio: 17.87
  • P/B ratio: 2.19
  • Dividend, 12 month trailing yield: 2.15%
  • Expense ratio: 0.48%

iShares MSCI Mexico ETF Holdings:

Source: https://www.ishares.com/us/products/239670/ishares-msci-mexico-capped-etf

Why the Deep Value ETF Accumulator invests in EWW:

  • Diversification from U.S. Equities (correlation 0.73)
  • Reasonable dividends while awaiting capital appreciation (2.15%)
  • Emerging Markets have a great long-term track record. EWW provides more direct ownership of emerging market equities
  • High volatility (26.76% standard deviation). Nearly double the volatility of an S&P 500 index fund (14.76%). Higher volatility typically provides more opportunities to buy at lower prices.
  • Good long-term performance history. Reasonable risk/reward prospects

Thank you for taking time to read this article. If you found it useful, please share it with a friend.

Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator

Disclosure: We own shares of EWW and intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek assistance from a Registered Investment Advisor prior to investing in any fund mentioned in this article.

Previous Deep Value ETF Accumulator article about EWW published in December 2016:  Making the Case for Investing in Mexico EWW $EWW