Mexico's Bolsa Mexicana de Valores (BMV) is the country's only stock exchange located in Mexico City, Mexico. With a market capitalization of $409 billion and approximately 466 publicly traded companies listed as of 2011, the stock exchange is the second largest in Latin America after Brazil's BM&F Bovespa and the fifth largest in the Americas.

After being originally owned by a group of brokerages and banks, the BMV became a publicly traded entity following its initial public offering (IPO) in June of 2008.

IPC: Mexico's Version of the Dow Jones

The Indice de Precios y Cotizaciones (IPC) is the largest stock index derived from the Bolsa Mexicana de Valores. Comparable to the Dow Jones Industrial Average, the index includes 35 of the largest stocks trading on the BMV. Notably, billionaire investor and richest person in the world Carlos Slim, owns nearly half of the companies listed on the index.

Some of the most recognizable stocks on the IPC include:

• America Movil
• Walmex
• Kimberly Clark
• Grupo Bimbo
• Fomento Economico Mexicano

Investing in the Bolsa Mexicana de Valores

There are many different ways that investors can invest in the Mexico's Bolsa Mexicana de Valores. U.S. investors seeking easy exposure may want to look into exchange-traded funds (ETFs), while those looking for more specific exposure can seek out American Depository Receipts (ADRs) and stocks trading directly on the BMV.

The most popular Mexican ETFs in the U.S. include:

• iShares MSCI Mexico Investable Market Index Fund (EWW)
• ProShares Ultra MSCI Mexico Investable Market (UMX)

Popular Mexican ADRs in the U.S. include:

• America Movil SAB de VC (AMOV)
• Cemex (CX)
• Coca-Cola Femsa (KOF)
• Telemex Internacional (TII)
• Grupo Televisa (TV)

Benefits & Risks of Investing in Mexico

Mexico's economy is the 13th largest economy in the world and one of the most significant in Latin America. But before investing in the country, investors should be aware of many risks that could impact their investments. For instance, the country's economy is relatively dependence on that of the U.S. and Canada.

Benefits of investing in Mexico include:

• Strong Emerging Market. Mexico is considered a significant emerging market, alongside the so-called BRIC nations of Brazil, Russia, India and China, with gross domestic product (GDP) growth of 5.5% in 2010 and a $1.2 trillion 2012 nominal GDP.
• Export Driven Economy. Mexico has a robust export-driven economy with some 90% of its trade governed under free trade agreements with more than 40 countries. The country exports everything from automobiles to coffee and cotton.

Risks to investing in Mexico include:

• State Corruption. Mexico is ranking with a relatively high corruption index by many international organizations, including the Heritage Foundation. These ratings can negatively affect the country's economic prospects moving forward.
• Dependence on the U.S. & Canada. Mexico is largely dependent on the U.S. and Canada, which accounts for 90% of its exports and 50% of its imports. As a result, the country could suffer if conditions in the U.S. or Canada deteriorated.

Key Things to Remember

• Mexico's Bolsa Mexicana de Valores (BMV) is the country's only stock exchange, with 466 listed companies worth some $409 billion.
• The Indice de Precios y Cotizaciones (IPC) is the largest stock index derived from the Bolsa Mexicana de Valores.
• There are many ways for investors to gain exposure to the BMV and the Mexican stock market, including the use of ETFs, ADRs and foreign traded stocks.