EPU, the lone Peru-specific ETF, allocates 46.5% of its weight to the materials sector and that makes sense because the country is the world’s largest silver producer and the fifth-largest gold producer. Consequently, the fund shows a higher correlation to precious metals. [This Chart Explains Why Gold Moves the Peru ETF]
Earlier this month, a report released by the World Gold Council and PricewaterhouseCoopers illustrated just how important gold is to the Peruvian economy. The report uses gross value added (GVA), which measures the contribution to gross domestic product (GDP), employment and taxes paid as a metric for measuring the impact of gold output on major gold producers’ economies.
Direct GVA from gold mining in Peru is estimated to be $8 billion, according to the report. “The average amount of economic value added per ounce of gold is US$1,139 and ranges from US$946 in China to US$1,352 in Peru in 2012. The differences between countries reflect variations in labour costs and productivity,” the report noted. [Peru ETF Rebounds With Metals Miners]
iShares MSCI All Peru Capped ETF
For more information on Peru, visit our Peru category.
Max Chen contributed to this article.