This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

TheStreet.com Ratings: Country Fund Favorite

Exchange-traded funds have recently become the favorites of the fund world. But investors should not forget that closed-end funds can offer the same performance figures, if not better.

TheStreet.com Ratings uses proprietary quantitative models to generate ratings on approximately 470 closed-end funds and 130 ETFs. Over a number of years, the output from our models has consistently shown that foreign/international funds have been among the top performers in either category. A subset of these foreign funds are the so-called country funds, which are distinguished by their specific focus on a particular country, as opposed to a region.

My pick among the top-ranked closed-end country funds is the Mexico Equity & Income Fund (MXE). Its returns are outstanding: year to date it has achieved 30.26%, over one year it has returned 57.95%, and its three-year record is 45.97%. The fund's sponsor is Phicardo Asset Management, and Gerald Hellerman is its manager.

The fund's top holdings include America Telecolm SA, Cemex (CX) and Empresas ICA (ICA).

The mystery of closed-end funds is that some discounts that exist between the share price and net asset value (NAV), or the sum of assets minus liabilities in the portfolio, do not narrow irrespective of the fund's performance. MXE is no exception, with the share price of $20.42 trading at a nearly 14% discount to its NAV of $23.73.

Since August 2005, the fund's discount has oscillated between 16% and 9%. The 9% discount was recorded in May 2006, and has since increased to the current 13.3%. Two things in particular may have caused the increase -- the market jitters earlier this year regarding emerging economies and the recent political chaos in Mexico.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,569.79 +6.49 0.04%
S&P 500 1,931.04 +0.37 0.02%
NASDAQ 4,373.9740 +4.2010 0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs