Peru ETF Rises 25.9% YTD on Dollar Weakness and AI Capex
The iShares MSCI Peru and Global Exposure ETF has surged 25.89% year to date in 2026, ranking second among country-specific emerging market ETFs after South Korea’s fund. Analysts cite U.S. dollar weakness, AI-driven capital expenditure and a forecast 29% EM earnings growth as primary catalysts.
1. Performance Overview
The iShares MSCI Peru and Global Exposure ETF has gained 25.89% year to date in 2026, making it the second-best performing country-specific emerging markets ETF after South Korea’s 29.65% fund. This rally builds on a broader emerging market rebound that saw a 34% gain in 2025.
2. Dollar and Macroeconomic Drivers
A weakening U.S. dollar, projected to decline up to 5% on expectations of Federal Reserve rate cuts, has boosted the relative value of Peru exposures and reduced servicing costs on dollar-denominated obligations within the ETF. Central bank diversification and a narrowing U.S. trade deficit further underpin this currency-driven tailwind.
3. Earnings Growth and AI Capex Catalysts
Emerging market earnings are forecast to expand 29% in 2026 versus 14% in the U.S., with Peru components benefiting from increased AI-driven capital expenditure as global AI infrastructure investment exceeds $650 billion. Improved corporate governance and rising industrial exports also support sustained earnings momentum for the ETF.