Finamex launches Mexican sovereign bond ETF via HANetf

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First Mexican company to list a UCITS ETF on the Bolsa Mexicana de Valores

Mexican broker Casa de Bolsa Finamex SAB de CV has entered the European ETF market with the launch of a Mexican sovereign bond ETF via HANetf.

The Finamex Mexico International Sovereign Bond 5-10yr UCITS ETF (MEXS) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.55%. The company added that it will launch on the Bolsa Mexicana de Valores (BMV) at a later date.

MEXS will track the S&P/BMV Sovereign International UMS 5-10 Year Target Maturity 30% Capped Bond Index, with the aim of gaining exposure to the Mexican UMS bond market.

The index is composed of Mexican government securities issued outside of Mexico in US dollars with maturities between five and 10 years.

According to HANetf, Mexico is well positioned compared to other Latin American countries because it has one of the lowest debt-to-GDP ratios. According to the Organization for Economic Co-operation and Development (OECD), its countries’ debt is one of the most liquid and actively traded among emerging market economies.

It is the first fixed income strategy to be launched on the HANetf platform and comes after ETF feeds first revealed that the Mexican broker was looking to set up shop in Europe in January.

Eduardo Arturo Carrillo Madero, CEO of Casa de Bolsa Finamex, said, “We have seen local Mexican demand increase for these constant-duration products over the past few years. Mexican bonds are among the most liquid in emerging markets and clients are always looking for exposure to Mexico in dollar-denominated bonds.

Hector McNeil, Co-CEO and Founder of HANetf, added: “Demand for UCITS ETFs is growing among investors due to strict regulation and structure, coupled with strong product distribution through brokers. such as Finamex.

“Fixed income ETFs are a group of products that we want to grow over time to align with our market-leading thematic, crypto and commodity ETFs and ETPs.”

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