The exchange traded fund, iShares MSCI Mexico (EWW) is benefiting from the country’s stable currency, abundant trade and infrastructure development. The ETF is up 24% year-to-date and 15% over the last three months after the May correction and a key presidential election.
Juan Carlos Arancibia writes that Mexican imports into the U.S. are growing faster than those from China. He also notes that mobile telephone service is booming throughout Mexico as wireless provides better service and delivery than landlines. The top holding in the EWW ETF is America Movil (AMX), a wireless service provider.
For full disclosure some of Tom Lydon’s clients hold EWW.
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