How to Invest in Mexico

Mexico is the largest trading partner of the U.S. and it has boasted a top-15 largest economy in the world in recent years. ¹ In Latin America, it’s the second-largest economy, with only Brazil ahead of it. Mexico is still considered an emerging market by many investors, even given its strong position among global economies. There are good investments to be had in Mexico, but if you are a U.S. investor and you want to invest in Mexico, you should keep in mind the high correlation of the Mexican stock market with the U.S. markets. 

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Overview of the Mexican Stock Market

Mexico’s economy has continued to grow post-pandemic. Although the Mexican gross domestic product (GDP) declined by over 8% during the worst of the pandemic, it largely bounced back and grew by more than 6% in 2021 and 3.7% in 2022. However, the Mexican economic expansion has slowed in more recent years, growing by just 0.79% in 2025. ²

Mexico does have strong institutions and is open to trade. Mexico’s economic fortunes are closely tied to those of the U.S. since Mexico has an export-based economy and the U.S. is its biggest customer, by far.

The main stock exchange in Mexico, the Mexican Stock Exchange or BMV, was a private company for 114 years until 2008 when it IPO’d and went public. It is located in Mexico City and is the nation’s only full-service stock exchange.

The main market index is the S&P/BMV IPC, where 35 of the country’s largest and most liquid stocks are listed. Some of them even have U.S. counterparts, like Walmex and America Movil. Both of these stocks also trade on U.S. exchanges. The IPC exchange is broad-based with the sectors of consumer discretionary, financials, utilities, consumer staples and industrials and more represented.

How to Invest in Mexico With ADRs

You can gain access to some of the stocks on the Mexican market using only an online broker, a free app or your current brokerage company. Some Mexican companies are on the NYSE and NASDAQ through the use of American Depository Receipts (ADRs).

ADRs are securities issued by U.S. banks that represent shares of Mexican companies that can be purchased through your brokerage and traded on U.S. stock exchanges. ADRs are not available for all public Mexican companies. However, for those that offer them, they are one of the most convenient ways with which you can invest in Mexico.

How to Invest in Mexico With ETFs

Another convenient method of trading in Mexican stocks is by buying related exchange-traded funds (ETFs). Mexican ETFs are very similar to U.S. ETFs in that they trade throughout the day on the exchanges, but are baskets of securities like mutual funds. They are also usually industry-specific, allowing you to customize exactly where in Mexico you want to focus.

Mexico-centric ETFs are on both the NYSE and NASDAQ. Pick your ETF carefully so it matches your investment goals and profile. You can purchase them from one of the digital wealth management companies like Betterment or a reputable broker like TD Ameritrade. Varying commission fees may apply to foreign purchases like these.

Using International or Mexican Brokers

You can invest directly in Mexico’s stock market by opening an account with an international broker regulated by the U.S. Securities and Exchange Commission (SEC) or with a Mexican stock brokerage. Both are going to be much more expensive than investing in ADRs or ETFs, although they may offer more exposure and help you further diversify your portfolio.

Here are the steps you can take to trade securities on the Mexican stock exchange:

1. Open an international trading account with an international stockbroker. Some popular choices are Interactive Brokers, Fidelity and TD Ameritrade. Alternatively, open an account with a broker based in Mexico.
2. Fund your trading account with money. Check to determine if there is a minimum balance requirement and, if so, how much it is. If you work with a Mexican brokerage, there may be currency exchange fees.
3. Obtain access to the online trading platform used by your broker. Use it to practice trading in the Mexican markets.

Once the above steps are complete, you can start trading. There are transaction costs and fees with every trade, so you may want to opt for larger and fewer trades to minimize these costs.

Benefits and Risks of Investing in Mexico

Like any investment, there are pros and cons to investing in Mexico. This is especially true of foreign investors from the U.S., as there are additional costs and fees to worry about. So make sure you do your research before putting any money into Mexican investments.

While some Americans tend to see Mexico in terms of corruption, drug gangs and immigration issues, the country has a robust emerging market economy. Mexico has an export-driven economy, which broadens its appeal to investors. That’s because the Mexican market has shown a diversity that many wealthier countries feature. Therefore, it should come as no surprise that the economy is seen as emerging internationally. Currency risk is always an issue if you buy directly from Mexico’s stock market. These are fees you simply won’t encounter by sticking to U.S. investments, so plan for them.

The geopolitical risk of Mexico could affect stock prices due to the drug war that has lasted since 2006. Additionally, Mexico is subject to economic risk since its GDP turned negative early in 2019 before the pandemic. Emerging markets have a significant risk attached to their stocks. There’s also a significant liquidity risk in emerging markets trading. It’s safest to stick with the stocks of large, well-known companies.

Tariffs and U.S.–Mexico Trade Tensions

Investors should also consider the potential impact of tariffs and trade policy on Mexico’s economy. Mexico is heavily integrated with the United States through trade, particularly in industries like automobiles, electronics and industrial manufacturing. Because so much of Mexico’s production is exported to the U.S., changes in American tariff policy can quickly affect corporate earnings and investor sentiment in Mexican markets.

Recent tariff proposals from the Trump administration targeting Mexican imports have created renewed uncertainty for companies that rely on cross-border supply chains. Even when tariffs are proposed rather than immediately implemented, markets can react as investors reassess the potential costs for manufacturers and exporters.

Tariffs can increase the price of Mexican goods in the U.S., potentially reducing demand or compressing profit margins for companies that operate on thin manufacturing spreads. This can be particularly significant for sectors such as automotive production, which represents one of Mexico’s largest export industries.

At the same time, Mexico continues to benefit from long-term supply chain trends such as nearshoring, where companies move production closer to U.S. markets to reduce geopolitical and logistical risks. While tariff threats can create short-term volatility, Mexico’s deep integration with North American manufacturing means the country may remain an attractive location for global production in the long run.

Bottom Line

Mexico has one of the largest economies in the world and it’s still growing. It has a stock market in which Americans can invest with relative ease due to the close ties between Mexico and the U.S. It’s important if you want to invest in Mexico to carefully do market research to identify undervalued securities. Mexico has an extra layer of risk due to the corruption in some industrial sectors and gang activity in the country.

Investing Tips

• If you have questions about including Mexican investments in your portfolio, a financial advisor may be able to help Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Check out SmartAsset’s asset allocation calculator to help you structure your portfolio. Your asset allocation will become incredibly important as you approach retirement.

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