Summary
- The iShares MSCI Peru ETF (EPU) has surged 69.1% YTD, earning a Strong Buy Quant Rating and ranking as the top single country ETF for 2025.
- EPU’s outperformance is driven by strong returns from a concentrated set of holdings and sector exposure.
- The fund’s narrow f…
Summary
- The iShares MSCI Peru ETF (EPU) has surged 69.1% YTD, earning a Strong Buy Quant Rating and ranking as the top single country ETF for 2025.
- EPU’s outperformance is driven by strong returns from a concentrated set of holdings and sector exposure.
- The fund’s narrow focus presents significant vulnerability and concentration risk for future performance.
- I would not add to EPU in 2026, suggesting investors consider alternative approaches to mimic returns and avoid fees.
Andrzej Rostek/iStock via Getty Images
One of the top-performing single country ETFs in 2025 has been the iShares MSCI Peru ETF (EPU). The fund has returned a whopping 69.2% since January 1. EPU currently holds the highest Seeking Alpha’s Quant
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Quick Insights
EPU’s 69.1% YTD return is attributed to strong gains from a small group of its largest holdings and a heavy sector concentration.
EPU’s high concentration in a limited number of stocks and sectors increases vulnerability to adverse movements in those components.
I recommend avoiding new positions in EPU for 2026 and suggest investors could replicate its strategy directly to bypass fund fees.