Barclay’s iShares MSCI Mexico (EWW) is la primera among the rival Latin America-focused mutual funds and exchange traded funds (ETFs). Based on 12 months as of April 30th, it is up 38%, compared to the iShares S&P Latin America 40 Index (ILF), at 26% and iShares MSCI Brazil (EWZ) up 21%. However, EWW only has a two-star rating from fund raters Morningstar. Bill Donoghue of MarketWatch on Sharebulider.com looks closer to find that although EWW lost money in 2002, Brazil and other Latin American countries lost more. Therefore, EWW had less to gain in the recovery year of 2003. The Morningstar risk rating considers how fast the fund recovers losses. Latin American markets have had 3 market corrections in the past 4 years, with a new high in 3-4 months. The risk statistics for EWW look promising and it should help give a higher rating once 2002 is dropped from the 5-year track record.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.