Daily ETF Watch: New Fund To Exclude Mexico

WisdomTree plans global ex-Mexico ETF.

Reviewed by: Heather Bell
Edited by: Heather Bell

WisdomTree has filed for the first global ETF that will exclude only Mexican stocks. The WIsdomTree Global ex-Mexico Equity Fund will cover securities listed and domiciled in the U.S. and all the major developed and emerging markets except for Mexico.

The index is weighted by modified market capitalization, which is unusual for a WisdomTree fund. Most of the firm’s ETFs use an alternative weighting approach that relies on dividends or earnings. Eligible companies must have float-adjusted market capitalizations of at least $1 billion and meet certain liquidity thresholds that vary depending on whether the company falls under the emerging or developed-market designations.

The methodology selects the largest 2,000 stocks from the pool of eligible companies based on market capitalization. Upon each rebalancing, sectors are capped at an individual weighting in the index of 25 percent.

The filing did not include a ticker or expense ratio, and did not mention a principal listing exchange.

Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.