U.S. equities have done well this year, but a widely followed exchange-traded fund that tracks Mexican stocks is doing far better.
EWW vs S&P 500 in 2017
The ETF's three best-performing stocks this year are hotel operator Hoteles City Express, up 49.7 percent, airport operator Grupo Aeroportuario del Sureste, up 48.7 percent, and telecom Axtel SAB, up 45.4 percent.
Alan Alanis, Latin America equity strategist at UBS, said the ETF's surge is a result of three factors: a weaker dollar, less concern about U.S.-Mexico trade relations and better-than-expected economic growth from Mexico.
"The first, and by far the most important one, is currency. The Mexican peso went from being the worst-performing currency against the dollar to being the best-performer in 2017," Alanis said. "Of the 30 percent gains in the EWW, two-thirds of those are currency-related."
The Mexican peso has surged more than 15 percent against the U.S. dollar this year. It has also spiked approximately 20 percent since hitting an all-time low against the greenback in January.