EPU: Hold But Stay Underweight

Summary The iShares MSCI Peru and Global Exposure ETF has recently ranked among the top-performing emerging market ETFs. Despite strong recent returns, Peru's macroeconomic outlook remains hazy, introducing uncertainty to forward performance. Valuation considerations and regional macro factors are critical in assessing continued upside for EPU. Limitations of EPU and global alternatives are discussed, suggesting careful comparison for global investors. Tuul & Bruno Morandi/DigitalVision via Getty Images iShares MSCI Peru and Global Exposure ETF The iShares MSCI Peru and Global Exposure ETF ( EPU ) has been one of the top-performing emerging market ETFs over the past three years. Peru has trounced other regional markets, including Latin American peers, Asian markets, and This article was written by Dylan Waller 936 Followers Follow I have been writing about frontier and emerging markets since 2015, and also follow other international ETFs/ADRs. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.