Comparing The Equity Market Performance Of Canada And Mexico

Investing in emerging stocks can yield higher returns than developed stocks. As the name implies, companies in emerging countries have plenty of room for growth whereas companies in the developed world mostly operate in a saturated market. Not all developed companies can be successful by moving into emerging markets. In fact, only some of the developed companies are successful in expanding overseas especially in developing countries.

In this post, let us take a quick look at the performance of Canada and Mexico using the country specific ETF as a proxy for the two equity markets of these countries. In all the three periods shown below, the Mexican ETF easily beat the Canadian fund. Over the five year and long term the difference in returns is substantial.

1. 1-year return of Canada vs. Mexico ETF:

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2. 5-year return of Canada vs. Mexico ETF:


3. Long-Term return of Canada vs. Mexico ETF:


Source: Yahoo Finance

The iShares MSCI Canada ETF (EWC)  and the Shares MSCI Mexico ETF(EWW) has dividend yields  2.12% and  1.01% respectively.

Disclosure: No Positions

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