It is a passive single-country ETF that tracks an MSCI index of companies listed in Peru or with their main business base in Peru. Mining companies, such as copper and silver producers, carry a large weight, so the fund tends to be concentrated in a small number of stocks.

It suits investors who want exposure to the Peruvian economy and the commodity cycle and are willing to accept the volatility that comes with single-country and commodity concentration.

It is an ETF managed by iShares using a passive (index-tracking) approach.

The fund tracks an MSCI index of companies listed in Peru or with their main business base in Peru. The Peruvian equity market has a large weight in mining companies such as copper and silver producers and tends to be concentrated in a small number of stocks, so the fund offers single-country exposure that directly reflects the Peruvian economy and commodity price trends.

• Single-country exposure to Peru
• Holdings with a high weight in mining and commodities

Assets under management (AUM) stand at $521.5M, and the total expense ratio (Expense Ratio) is 0.59% per year.

Compared with other single-country ETFs such as EWJ and EWY, the main points of comparison are the country of investment and the degree of commodity concentration.

Peruvian stocks react sensitively to commodity prices such as copper and silver, the Peruvian economy, the political environment and global risk appetite. They tend to be strong when commodities are strong and weak when commodities are weak. Volatility is relatively high because of the concentration in a small number of mining stocks.

Fund flows into Peruvian stocks diverge widely depending on the commodity outlook, global risk appetite and the Peruvian political environment, and money sometimes shifts into related products when expectations of a commodity upswing grow. It is also worth noting that performance can vary greatly depending on Peruvian policy and the commodity cycle.

Its strength is clear exposure to the Peruvian economy and commodities, while single-country and single-stock concentration and political and currency risks are considerations.

To broaden exposure to Latin America as a whole, including Peru, direct substitutes such as ILF are available, and to invest in another single country in the same region, products such as Brazil's EWZ are also worth comparing. To diversify across emerging markets broadly, you can also consider products such as EEM. The three products shown in the table, EWJ, EWY and FLJP, are single-country ETFs investing in Japan and South Korea respectively, so their country exposure differs. What sets this ETF apart is its narrow focus on Peru, with single-country and commodity concentration.

Here are the points to check before investing in EPU. Exposure to Peru and commodities is attractive, but single-country and single-stock concentration, political risk and currency exposure need to be confirmed in advance. It is also a good idea to compare it with Latin America and emerging market products.

Price swings in commodities such as copper and silver, political and policy changes in Peru, and the sol exchange rate are the main short-term drivers of performance. Because of the concentration in a small number of mining stocks, volatility may be greater than for globally diversified emerging market products. Performance depends heavily on the commodity cycle.

It is a suitable candidate for investors who want to concentrate on the Peruvian economy and the commodity cycle. For diversification across Latin America as a whole, consider a product such as ILF, and if you want single-country exposure to Peru, it is advisable to compare the two and choose accordingly.