The best ETF for a significant emerging market, Peru, has been outperforming other emerging economies that have gotten a lot of attention recently. Peru is a significant emerging economy, offering a stable government and strong investment prospects. Participating in the growth of Peru has not been easy for foreign investors so far, but this is changing with the introduction of some of the best etfs in the market for Peru.

iShares has recently launched EPU, which will track the 25 largest equities in the Peruvian market, essentially tracking the MSCI All Peru Index. Expense ratio is pegged at 0.63% for this ETF. Recently, Global X has launched the "Global X FTSE Peru 20 ETF ", which will track the FTSE Peru 20, which includes some of the major commodity providers in Peru among other large equities.

Most of the interest in Peru is coming from the rapid rise of its Lima Index, which has nearly doubled this year. Moreover, Peru has not yet garnered the interest that other emerging economies have, thus leaving room for additional growth as more foreign investment flows into its markets. Peru's economy grew at 6% in 2006, and then jumped to 9% in 2007 and 2008.

In 2009, the economy continues to grow at a 2%+ clip, mostly protected by growing domestic demand. Peru's export economy has been driven primarily by basic minerals such as copper and zinc as well as gold, and is subject to global economic vicissitudes. The Lima index and Peru ETF both reflect the strong role of basic minerals in the Peruvian economy.

While the Peruvian government instruments easing policies to stimulate the economy, the country remains ideally positioned to benefit from a global economic rebound. With the availability of the Peruvian ETF, it makes it simple to add this important emerging economy to a diverse portfolio of emerging economies, especially when focusing beyond the BRIC countries.