Published On: Wed, Jan 8th, 2014

Shares MSCI Mexico Capped ETF (NYSEARCA:EWW) Soon To Be ‘New’ China

Dallas, Texas 01/08/2014 (FINANCIALSTRENDS) – Analysts are quite bullish about Shares MSCI Mexico Capped ETF (NYSEARCA: EWW). Many argue that the upward trend is because of a few geo-political policies and some major financial strength. The opportunity for this Mexico-capped fund is in the fact that most economists and financial analysts point out that China’s growth on the world market and strengthening of its currency Yuan against the U.S. Dollar offers no profitable value for industries and business.

China is on par US currency

As manufacturers, retailers and outsourcing sectors in the U.S, find the high stability of the Chinese Yuan against the U.S. Dollar non-converting in terms of profits, their search for the next big market which will offer higher leverage has led to its own borders – Mexico. The reason Mexico tops the list, it due to its regional trade agreement NAFTA-which establishes preferential trading between neighbors- with the U.S.

Mexico finds its manufacturing roots and expands

Shares MSCI Mexico Capped ETF(NYSEARCA:EWW) are likely to be buoyed by the expected growth in the Mexican manufacturing sector. The recognizable expansion in this sector is the weaker Mexican peso, which is nearly 80% lesser than the  U.S. dollar with respect to Chinese Yuan. Secondly, there is reverse drain of skilled, semi-skilled and non-skilled Mexican back to their motherland, which has led to a rise in the number of manufacturing units across industries.

Most of the automotive industry big names are already in action in Mexico. One of the first automotive plants, and currently, the largest belongs to Nissan. None of the other auto manufacturers are expected to buck the trend and soon Mazda, Honda and Volkswagen are expected to begin Mexican operations.

Though political reforms have made room for quick change, the high excitement about Mexican oil has since fallen. Though foreign investment continues, many which are already operational in Mexico such as Miguel Hidalgo are not making as much profits as other oil refineries higher up on the coast.

Shares MSCI Mexico Capped ETF (NYSEARCA: EWW) is a Mexico-based investment fund which looks for investment trading on price to yield performance. It has a market cap of 2.60 billion and trade volumes of 4,061,547 and a yield of 0.60. The company currently trades at $66.11 and noted an upward trend change of 1.12% as of Jan 7, 2013. The stock has a 52week high of 76.80, while the low is $57.69.

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