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 firm added 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, aiming to get exposure to the UMS Mexican fixed income market.
The index consists of Mexican government securities issued outside of Mexico in US Dollars with maturities of between five and 10 years.
According to HANetf, Mexico is well positioned compared to other Latin American countries as it has one of the lowest debt to GDP ratios. Its countries debt is some of the most liquid and actively traded among emerging market economies, according to the Organisation for Economic Cooperation and Development (OECD).
It is the first fixed income strategy to launch on the HANetf platform and comes after ETF Streamfirst revealed the Mexican broker was looking to move into Europe in January.
Eduardo Arturo Carrillo Madero, CEO of Casa de Bolsa Finamex, said: “We have seen local Mexican demand grow for these constant duration products in the last few years. Mexican bonds are one of the most liquid in Emerging Markets and clients continuously look for exposure to Mexico in dollar denominated bonds.”
Hector McNeil, co-CEO and founder of HANetf, added: “The demand for UCITS ETFs is growing among investors due to strong regulation and structure, coupled with strong distribution of products through brokers such as Finamex.
“Fixed income ETFs are a product group we want to expand over time to align with our market leading thematic, crypto and commodity ETFs and ETPs.”