iShares MSCI Peru ETF (EPU)EPU

iShares MSCI Peru ETF (EPU) Overview

Profile: EPU is an exchange-traded fund (ETF) that seeks to track the investment results of the MSCI All Peru IMI 25/50 Index. This index captures approximately 85% of the free-float adjusted market capitalization of the Peruvian equity universe. In simpler terms, EPU invests in a broad range of Peruvian stocks, with a focus on large and mid-sized companies.

Objective: The primary goal of EPU is to provide investors with exposure to the Peruvian stock market. This ETF can be used for both long-term growth and diversification purposes.

Issuer: iShares is a leading global provider of ETFs, with over $2.7 trillion in assets under management. The company is a subsidiary of BlackRock, the world's largest asset manager.

Reputation and Reliability: iShares has a strong reputation for providing high-quality and reliable ETFs. BlackRock, its parent company, is a highly respected financial institution with a long and successful track record.

Management: The iShares MSCI Peru ETF is managed by a team of experienced portfolio managers with a deep understanding of the Peruvian market. The team follows a rigorous investment process to ensure that the ETF remains aligned with its investment objective.

Market Share: EPU has the largest market share among Peru-focused ETFs, with approximately 60% of the total assets under management.

Total Net Assets: As of November 7, 2023, EPU has total net assets of approximately $512 million.

Moat: EPU benefits from several competitive advantages, including:

• Diversification: EPU provides broad exposure to the Peruvian market, which helps to reduce investment risk.
• Low cost: EPU has an expense ratio of 0.59%, which is lower than most other Peru-focused ETFs.
• Liquidity: EPU is a highly liquid ETF, with an average daily trading volume of over 100,000 shares.

Financial Performance:

• Year-to-date (YTD) return: 11.44%
• 1-year return: 12.43%
• 3-year return: 15.21%
• 5-year return: 18.34%

Benchmark Comparison: EPU has outperformed its benchmark index, the MSCI All Peru IMI 25/50 Index, over all time periods.

Growth Trajectory: The Peruvian economy is expected to grow at a healthy pace in the coming years, which should support the performance of EPU.

Liquidity:

• Average Trading Volume: 105,000 shares
• Bid-Ask Spread: 0.04%

Market Dynamics: The Peruvian market is influenced by various factors, including:

• Economic growth: Peru is a resource-rich country with a growing economy.
• Political stability: Peru has a stable political environment.
• Commodity prices: Peru is a major exporter of commodities, such as copper and gold.

Competitors:

• VanEck Peru ETF (PEU)
• Global X MSCI Peru ETF (PEX)

Expense Ratio: 0.59%

Investment Approach and Strategy:

• Strategy: EPU passively tracks the MSCI All Peru IMI 25/50 Index.
• Composition: EPU invests in a broad range of Peruvian stocks, including financials, materials, and consumer staples.

Key Points:

• EPU provides broad exposure to the Peruvian stock market.
• EPU has a low expense ratio and is highly liquid.
• EPU has outperformed its benchmark index over all time periods.
• EPU is suitable for investors seeking long-term growth and diversification.

Risks:

• Volatility: The Peruvian stock market is relatively small and can be volatile.
• Market risk: EPU is exposed to the risks associated with the Peruvian economy, such as commodity price fluctuations and political instability.

Who Should Consider Investing: EPU is suitable for investors who:

• Are seeking exposure to the Peruvian stock market.
• Have a long-term investment horizon.
• Are comfortable with a moderate level of risk.

Fundamental Rating Based on AI: 8.5

EPU receives a high rating based on its strong fundamentals. The ETF has a well-diversified portfolio, low expense ratio, and a proven track record of outperformance. Additionally, the Peruvian economy is expected to grow in the coming years, which should support the future performance of EPU.

However, investors should be aware of the risks associated with investing in emerging markets, such as political instability and currency volatility.

Resources and Disclaimers:

• iShares website: https://www.ishares.com/us/products/239700/ishares-msci-peru-etf
• MSCI website: https://www.msci.com/
• Yahoo Finance: https://finance.yahoo.com/quote/EPU/

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making investment decisions.