The S&P/BMV IPC is the most representative stock index of the Mexican stock market. It brings together the leading companies listed on the Mexican Stock Exchange (BMV) and serves as an X-ray of market behavior. It is used as a benchmark by institutional investors, brokerage firms, banks, and analysts to assess the performance of the national stock market. The index is calculated and managed by S&P Dow Jones Indices in partnership with the BMV. It includes around 35 issuers selected based on criteria such as liquidity, trading volume, and market capitalization. Here, we explain in detail what the S&P/BMV IPC is, how it is calculated, why it is so important in the financial system, and how you can invest in it from any platform.
What is the S&P/BMV IPC and How is it Calculated
The S&P/BMV IPC (Indice de Precios y Cotizaciones) is the main indicator of the stock market. It represents the average performance of the largest and most liquid stocks traded. Its objective is to accurately reflect the performance of the stock market.
Unlike a simple average, the IPC uses a calculation methodology weighted by float-adjusted market capitalization. This means that companies with a higher market value (and more shares available to the public) have a greater weight within the index.
Criteria to be Part of the IPC
Have an active and consistent operational history.
Meet minimum liquidity and trading frequency criteria.
Have significant market capitalization.
Be eligible according to the methodological rules of S&P.
Be listed and traded on the stock market.
The composition of the IPC is reviewed quarterly. Companies can enter or leave depending on their market performance, traded volume, and market float. Common examples of issuers that are often part of the index include large telecoms, food and beverage groups, banks, cement companies, industrial conglomerates, and major retailers.
Importance of the IPC in the Economy
The S&P/BMV IPC is much more than just a simple number that rises and falls. It is a key benchmark for the entire financial system. It works as a “thermometer” that measures the health of the local stock market and the confidence of both national and international investors.
Why is the IPC so important?
It serves as a benchmark for investment funds, ETFs, and managed portfolios.
It reflects market confidence in the economy and in its leading companies.
It is closely followed by financial media, analysts, and institutional investors.
Its behavior influences the attraction of foreign capital.
It impacts country risk perception and can influence economic and monetary policy decisions.
When the IPC rises, it means that, on average, leading companies are gaining market value. When it falls, it can reflect uncertainty, low confidence, or negative reactions to economic, political, or international events.
Therefore, for anyone investing in the stock market, the IPC is the essential starting point for analyzing market trends.
How to Invest in the S&P/BMV IPC
Although you cannot “buy the IPC” directly, you can invest in instruments that replicate or follow its behavior. This allows you to achieve returns similar to those of the index without having to buy each stock individually.
Options to Invest in the IPC
NAFTRAC 02: the most popular ETF. Replicates the IPC and trades like a stock. It can be purchased from platforms like GBM+, Kuspit, or your bank's app.
Investment funds: many operators offer funds that invest in IPC companies or use it as a benchmark.
Individual stocks: you can directly buy stocks of the companies that make it up. Requires more analysis and diversification on your own.
Retirement plans: some retirement portfolios include partial exposure to the IPC, especially in their more aggressive funds.
Institutional mandates: for investors with high volumes, it is possible to structure portfolios that replicate the IPC with advanced techniques.
Advantages of Investing in the IPC
Automatic diversification in leading domestic companies.
High liquidity in instruments like the NAFTRAC.
Transparency: you can easily see its composition, history, and movements.
It is an ideal option for the long term if you believe in market growth.
However, it is important to note that, like any equity instrument, investing in the IPC involves risk and volatility. It is not recommended for short-term goals or extremely conservative profiles.
