The Mexican elections might be helping out the Mexico exchange traded fund (ETF). iShares MSCI Mexico Fund (EWW) reached new highs this week and has been on a steady rise since mid-June. Joanne Von Alroth of Investor’s Business Daily points out that the rise coincides with the July election of President Felipe Calderon, a conservative who continues free-market policies of the past administration. He has not implemented new policies since his inception in December, but investors seem confident his leadership will be good for the country. One area of focus is a crackdown on drug cartels to lower the violence in the country.
EWW rose 43% in 2006 and is up 6% this year. The largest holding is America Movil (AMX), makes up 24% of the ETF. AMX is a wireless phone company with over 93.3 million customers in 14 countries.
For full disclosure, some of Tom Lydon’s clients own EWW.
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