Peru ETF i EPU
This morning I added the iShares MSCI All Peru Capped Index Fund (EPU) to the Barchart Ban Meerten New High portfolio. EPU seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Peru Capped Index . The Index is a free float- adjusted market capitalization index designed to measure the performance of the "Broad Peru Equity Universe" MSCI by identifying Peruvian equity securities that are classified in Peru according to the MSCI Global Investable Market Indices Methodology as well as securities of companies that are headquartered in Peru and have the majority of their operations based in Peru.
At the present time EPU is very heavy into mining commodities:
1 - Industrial Materials -- 61%
2 - Financial Services -- 30%
3 - Consumer Goods -- 8%
4 - Energy -- 1%
Although the Peruvian economy is presently recovering faster than the US economy this is more of a technical play based on the upward price momentum of the underlying securities.
Barchart has 13 of 13 technical buy signals for a 100% buy rating. The ETF gained 10.04% last month hitting 17 new highs in the last 20 trading sessions. The 14 day Relative Strength Index is 78.33% and rising. The ETF recently traded at 38.50 well above its 50 day moving average of 34.94.
Most Wall Street Brokerages do not give opinions on ETFs but the CAPS members on Motley Fool vote 31 to 5 that the ETF will beat the market with the All Stars in Agreement 13 to3.
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in the stock mentioned at the time of publication