Fed Dread Turns Mexico Into ‘Whipping Boy’ as ETF Outflows Surge
- ETF shows biggest withdrawals among emerging markets in 2015
- The fund has posted $840 million in outflows this year
All Eyes on Yellen as Markets Await Rate Decision
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Wagers that the Federal Reserve will raise interest rates for the first time in almost a decade are souring sentiment toward Mexican stocks.
Traders have pulled $840 million from the nation’s largest exchange-traded equities fund this year, the biggest outflow among developing nations, according to data compiled by Bloomberg. With one of the world’s most-traded currencies, deep corporate ties to the U.S. and policy makers who have pegged the timing of their rate decisions to the Fed’s calendar, Mexico is a popular way for foreign investors to bet on all things emerging markets, said Paul Christopher, the St. Louis-based head global market strategist for Wells Fargo Investment Institute.