The Peru exchange traded fund, iShares MSCI All Peru Capped Index Fund (NYSEArca: EPU), has taken a beating in the wake of Ollanta Humala being elected president of the country. This marks a shift in Peru’s policies with a slant to the left.

The ETF, which has about $489 million in assets, has had a tough year as political uncertainty has clouded the outlook for Peru’s economy.

The fund is down 17.7% so far this year after rallying 57.7% in 2010, according to Morningstar. [Peru ETF Rallies Despite Political Uncertainty.]

The latest election is a good example of how emerging economies present geopolitical risk, and how quickly a hot, up-and-coming economy can slip.

Humala will be tightly watched by investors as he begins to weave an administration, as much of the business sector and the media were not in favor of his candidacy, reports Lucien Chauvin for The Christian Science Monitor.[Peru ETF Sharply Lower After Election.]