iShares MSCI Mexico Index (ETF) (AMEX:EWW)
Exchange Traded Funds
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Recs
what's not to like about Mexico, with all the reforms that have begun to be passed, it will be the begging of a new boom for the country.
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Mexico could be the next Brazil
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long term prospects are unbelievable - but high volatility and tied to US economy.
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Mexico, the cradle of one of the earliest civilization has come a long way to become the thirteenth largest economy in the world. This free market economy has managed to improve its infrastructure in sectors like telecommunication, transport, and construction by enhancing public private partnership.
The fund, iShares MSCI Mexico Index (EWW) posted a return of 44 % for the year 2006, riding on the spectacular performance of its telecom and construction industry that grew by 4.5% and 7% respectively during the same period. The fund with 52% of its assets invested in these two sectors gained immensely as is evident from its returns. Of the 28 stocks in the fund the above said 52% is invested in 4 stocks, which are industry leaders in their own right.
Of the $24.5 billion Mexican mobile market, America Movil SA dominates with 77% of market share, in which the fund has invested 25% of its total assets. With the company expecting to increase its subscribers by 58% and the mobile market slated for 8.2% growth in 2007, the fortunes of the fund looks good. With the mobile density as low as 37%, the scope for growth is enormous in the coming years and as the market leader America Movil SA will have a significant advantage in this evolving market.
Construction industry is another area that will see growth as the U.S – Mexico trade agreement to enhance Mexican cement import to the U.S blooms to its full potential. Mexican housing sector is expected to grow by 40% and commercial sector by 27% by the end of 2007. These two factors will influence the firm Cemex S.V. positively as 46% of its revenue comes from these two markets apart from them being the leading players in both the markets. The fund with 16% of its assets in Cemex S.V will gain from this development.
These factors make the fund attractive for the coming period and will be looking forward to deliver another year of spectacular returns, which has been its feature for the last three years.
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A hot Mexican ETF
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Like mexico as dollar falls. Cheaper and better than Brazil.
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Mexico has been growing year to year from US dollars sent home from the us. companies investing there is adding to the influx too. home building there is feeding the economy and as the economy there is just waking-up their currency there will prosper. the growth of the country and it's currency will soon pass the growth that Brazil has seen lately.
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The election proved that Mexico is still run by the wealthy. Low wages and strong energy resources make this economy a great investment.
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Overall Average: 96% - Buy
Price 50.88
Support 50.38
Pivot Point 51.00
Resistance 51.62
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Mexico is a growing economy and growing into it's nascent democracy. A good bet, but keep an eye on it.
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