Peru ETF Climbs as Investor Confidence Strengthens

The iShares MSCI Peru ETF (EPU) continued its upward momentum this week, closing at $86.26, marking a fresh advance near its 52-week high of $86.81. The move extends a strong start to 2026, with the fund now up 17.54% year-to-date, significantly outperforming many emerging market peers. Price action over the past five sessions shows steady accumulation, with buyers consistently defending pullbacks above the $84 level.

Sector Exposure and Market Structure Support the Move

EPU tracks large- and mid-cap Peruvian equities, with a heavy concentration in financials and materials, sectors that tend to benefit from rising commodity demand and improving regional growth expectations. The ETF remains non-diversified, which amplifies both upside potential and volatility during favorable macro cycles. With net assets of approximately $272 million and a relatively low expense ratio of 0.59%, the fund continues to attract tactical allocations from emerging-market investors.

Risk Profile Remains Elevated but Manageable

From a risk perspective, EPU carries a five-year beta of 1.16, indicating moderately higher volatility than the broader market. While Morningstar risk metrics are not currently available, historical performance suggests investors are being compensated for the added risk, with a five-year average return of 24.04%. The ETF’s yield of 1.65% also provides a modest income component alongside capital appreciation.

Outlook Hinges on Commodities and Regional Stability

Looking ahead, Peru’s equity performance will remain closely tied to global commodity trends, domestic fiscal discipline, and currency stability. As long as copper prices and regional demand remain supportive, EPU’s technical setup suggests limited downside in the near term, with resistance clustered just above current levels near the upper end of its annual range.