How Latin American ETFs Are Beating Emerging Markets in May 2026

Lucas and Luna drill into the surprising divergence within emerging markets this May 2026. While China ETFs like FXI are down 1.5% over five days, and the broad EEM is up just 6.4%, Latin American ETFs such as EWZ (Brazil, +1.7%) and the standout EWW (Mexico, +4.2%) are outperforming. But the real story is in the numbers: the trade-weighted dollar has eased to 119.3 from a peak near 120, giving commodity exporters breathing room. Mexico's peso has strengthened on nearshoring flows, and Brazil's central bank rate of 14.25% continues to attract carry trade. Meanwhile, consumer sentiment in the US hit a fresh record low in May, driven by Iran war inflation fears, which is crushing Chinese export demand. The hosts tie this to the broader theme of emerging market fragmentation, where country-specific factors now matter more than the EM label. Specific data points: the dollar index at 119.3, FXI at 35.75, EWZ at 36.49, and EWW's resilience. They also touch on the ECB's tough inflation stance and what it means for EM debt. #LatinAmerica #EmergingMarkets #ETFs #EWZ #EWW #FXI #StrongDollar #Mexico #Brazil #China #Nearshoring #CarryTrade #Commodities #Economics #FexingoBusiness #BusinessPodcast #GlobalEconomy #May2026 Keep every episode free: buymeacoffee.com/fexingo