January 11, 2008 at 10:00 am by Tom Lydon
Has the iShares MSCI Mexico Index (EWW) exchange traded fund (ETF) been taking a short siesta?
Apparently not, as the ETF outdid the general market last year, up 12.9%. Many of the best stocks from Mexico don’t actually derive all their revenue or profits from the country, reports Dave Mock for The Motley Fool.
Some of the companies that are caliente en Mexico are:
- America Movil, 24.15% assets
- Coca-Cola FEMSA (KOF), 0.93% assets
- Wal-Mart de Mexico, 5.41% assets
- Grupo TMM (TMM)
- Grupo Simec (SIM)
A look at Coca-Cola shows that KOF is the world’s second largest Coca-Cola bottler, but the Mexico-based company is driven by a wide range of distributors in Latin America, producing 40% of the case volume sold. GrupoTMM trucks around lots of these bottles and provides maritime and
trucking transportation services. The company is full-force in its
turnaround efforts, to improve spending and operations.
Recent quarter sales show that more than 73% of sales growth came from regions outside of Mexico. But Mexico still makes up most of the company’s revenue - 52.6% of it in 2006.
Tags: Emerging Markets, Latin America, Mexico
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January 12th, 2008 at 1:09 pm
I bought EWW on 6/20/2007 at 62.66.
As of 1/11/2008, it is at 55.39 for a loss of 11.602%
I guess a better way to tell this story is that overall, last half of 2007, it has dropped.