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Mexico Funds

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You would like to invest in the Mexican stock market and consider two alternative ways of investing in Mexico:

(i) the Mexican closed-end country fund trading on the New York Stock Exchange and
(ii) the WEBS for Mexico trading on the American Stock Exchange.

Their websites are:

www.themexicofund.com
www.ishares.com/international/Americas/MSCI

(Mexico Index Fund)

Study all the relevant information from the websites and evaluate the relative merits and demerits of the two securities for your Mexican investment. Which one would you prefer?

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Solution Summary

This solution discusses the Mexican stock market.

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The ticker for them are:
i. MXF
ii. EWW (the website that you gave me wasn't the exact one, go to
http://us.ishares.com/content/stream.jsp?url=/content/en_us/repository/resource/summary_prospectus/is_sp_eww.pdf&mimeType=application/pdf

1. MXF
- Company profile: The Mexico Fund, Inc. is a closed-end, non-diversified management investment company. The Fund's investment objective is to seek long-term capital appreciation through investment in securities, primarily equity, listed on the Mexican Stock Exchange. The Fund invests in various sectors, such as telecommunications, retail, chemical products, housing companies, financial groups, media, mining and building materials. The Fund invests at least 80% of its total assets in equity securities listed on the Mexican Stock Exchange. The Fund may invest up to 20% of its assets in issuers that are listed on the Mexican Stock Exchange, but which are organized outside of Mexico, provided each such issuer has a subsidiary organized in Mexico.
- The Mexico Fund has a good start in ...

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