The $400 million iShares MSCI All Peru Capped Index Fund (NYSEArca: EPU) has a chance to run, but headwinds are whipping up for this country and its focused exchange traded fund (ETF).

Still, the Peru fund was among the best performers among all ETFs this week with a gain of more than 5%.

Peru’s stock market jumped recently following several days of losses tied to the runoff vote for president, Dow Jones Newswires reported. [Peru ETF Bounces After Sell-off.]

Former Peruvian military rebel Ollanta Humala opened a six-point lead in a presidential poll before a June 5 runoff vote, reports John Quigley for Bloomberg.

Other risks include higher mining royalties and increased state control of the country’s gas reserves. [Behind Peru ETF’s Pain is a Fast-Growing Market.]

iShares MSCI All Peru Capped Index Fund

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.