In Mexico the adoption increases
Investors in Mexico are not left out of this boom and have the opportunity to access local fixed income ETFs, whether government or corporate, but also ETFs that give access to global debt, both from governments and companies.
“This allows you to diversify your risk, all Mexican assets will have a common thread that is Mexico. If something happens to the country, all assets move in tune. If we speak at an international level, there will be a different behavior”, says Souza.
Investors in Mexico have taken advantage of it and the value of the instruments with which they complement their local portfolio through ETFs in the SIC (International Quotation System) already amounts to 35,000 million dollars.
In the SIC there is a range of more than 200 ETFs that give exposure to different countries, currencies and companies. The most traded value in this market depends on the mood of investors. Now that investors are worried about inflation, rising rates, Covid and China affecting supply chains, the most demanded instrument is the SHV, which follows short-term Treasury bonds.
At the same time, Souza explains, there has been a readjustment in the ETF following the S&P 500, meaning investors are moving from risky to safer. “And that is the beauty of these products: it allows you to go in and out, readjust your portfolio, very quickly and that is very valuable for an investor”, comments the manager.