'Trump ETF'? WisdomTree Global ex-Mexico Equity Index

♠ Posted by Emmanuel at 2/14/2017 05:42:00 PM

Santa Muerte: If you think Mexican stocks are good as dead, there's an ETF investing everywhere else.

There's an exchange traded fund (ETF) for almost everything. Do you think cyber security is the next big thing? Invest in one of the ETFs which put money into cyber security firms. Do you want to invest in an ethical ETF? There are--count em!--32 of these socially responsible funds which don't put money into alcohol, tobacco, defense, and so forth. Think of any sort of investment objective preference or objective out there and there is probably an ETF out there for you.

Now, the current US president is well-known for his hatred of Mexico. He wants to "renegotiate NAFTA" or the free trade agreement with the United States' southern neighbor together with Canada. He wants to build a wall on the US-Mexico to stop "rapists" and "criminals" from entering the US. The upshot for any reasonably well-informed person is that United States' policies discriminating against Mexico are likely coming, and that Mexico's economy will suffer as a result.

What, then, if you want to invest globally but fear Trump's anti-Mexico streak? Voila! There's an ETF for you, the WisdomTree Global ex-Mexico Quity Index which aims to invest in 2000 of the world's largest corporations--with the notable exception of those from Mexico:

The WisdomTree Global ex-Mexico Equity Index is a float-adjusted market capitalization weighted index that measures the performance of 2000 largest companies in developed and emerging markets throughout the world, excluding Mexico, that meet eligibility requirements. The Index was established with a base value of 200 on February 12, 2016. The Index is calculated in US dollars and is updated to reflect market prices and exchange rates.

So there you are. For the life of me, I cannot think of any good reason to not invest in Mexico unless you are expecting Mexico to significantly underperform every other country out there. Which, I believe that someone like Trump or those who believe in him would be convinced of.

Again, there's an ETF for everyone.