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For investors looking to avoid losses, iShares MSCI Mexico Capped ETF (EWW - Free Report) is probably a safe investment bet for now. The fund just slumped to a 52-week low and is down nearly 22.6% from its 52-week high price of $54.69 a share.
But is more pain in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.
EWW in Focus
This ETF seeks investment results that correspond generally to the price and yield performance of the MSCI Mexico IMI 25/50 Index. The fund manages an asset size of nearly $1.8 billion and an average daily trading volume of 4.4 million shares. It charges an expense ratio of 49 basis points a year. The product has 62 stocks in its portfolio (see: all the Latin American Equity ETFs here).
Why the Move?
Mexico has been much in focus after Donald Trump’s presidential victory. Trump has accused Mexico of taking away jobs from Americans. If he goes by the policies mentioned during his campaign, it could hamper employment, GDP and exports in the nation. Meanwhile, Trump plans to impose tariffs on cars exported to the U.S. from Mexico, which could hamper new investments and mar prospects of the booming car industry.
More Trouble Ahead?
Currently, EWW has a Zacks ETF Rank of 4 or ‘Sell’ rating with a High risk outlook, suggesting continued underperformance in the coming months. While the country’s central bank has embarked on an aggressive rate hike trajectory to put a check on the fall of local currency peso, there are some downside risks. Investors should therefore exercise caution and wait until the sector bottoms out before investing in this ETF.
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Mexico ETF (EWW) Slips to a New 52-Week Low
For investors looking to avoid losses, iShares MSCI Mexico Capped ETF (EWW - Free Report) is probably a safe investment bet for now. The fund just slumped to a 52-week low and is down nearly 22.6% from its 52-week high price of $54.69 a share.
But is more pain in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.
EWW in Focus
This ETF seeks investment results that correspond generally to the price and yield performance of the MSCI Mexico IMI 25/50 Index. The fund manages an asset size of nearly $1.8 billion and an average daily trading volume of 4.4 million shares. It charges an expense ratio of 49 basis points a year. The product has 62 stocks in its portfolio (see: all the Latin American Equity ETFs here).
Why the Move?
Mexico has been much in focus after Donald Trump’s presidential victory. Trump has accused Mexico of taking away jobs from Americans. If he goes by the policies mentioned during his campaign, it could hamper employment, GDP and exports in the nation. Meanwhile, Trump plans to impose tariffs on cars exported to the U.S. from Mexico, which could hamper new investments and mar prospects of the booming car industry.
More Trouble Ahead?
Currently, EWW has a Zacks ETF Rank of 4 or ‘Sell’ rating with a High risk outlook, suggesting continued underperformance in the coming months. While the country’s central bank has embarked on an aggressive rate hike trajectory to put a check on the fall of local currency peso, there are some downside risks. Investors should therefore exercise caution and wait until the sector bottoms out before investing in this ETF.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>