Swot Analysis : Latin America

1265 WordsAug 17, 20156 Pages
With the growing popularity of ETFs, investors have found it very easy and relatively inexpensive to trade currency ETFs in order to take advantage of fluctuations between currencies. Currency ETFs can be purchased to track most international currencies including the U.S. dollars, Canadian dollars, and Mexican peso. Currency ETFs aim to replicate movements in currency in the foreign exchange market by holding currencies either directly or through currency-denominated short-term debt instruments. Launched in 1996 the iShares MSCI Mexico Capped ETF (EWW) is the most popular and common ETF, offering retail investors an immediate approach to gain exposure to an extensive scope of Mexican equities. It tracks the MSCI Mexico IMI 25/50 record. This ETF is one of Latin America’s biggest with $2.2 billion in resources and has a cost proportion of 0.50%. Top sectors in the iShares MSCI Mexico Capped ETF are consumer defensive (23.6%); basic materials (19.02%): financial services (18.24%); consumer services (18.23%); and consumer cyclical (13.20%). Its top holding is telecom giant America movil (AMX), which accounts for more than 17 of the fund’s assets. The Mexican peso (MXN) was originally based on Spain’s official currency, known as the silver dollar. The Mexican name originated from the 8-genuine coins, made from pure silver, that were issued by Spain from Mexico. It was the first currency to use a distinct border and precise weight to guard against counterfeits, which made it
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