S&P Latin American equities have done well in 2025, with Peruvian equities demonstrating strong performance even beyond this year (see Exhibit 1). The S&P Peru Select 20% Capped Index had an annualized performance of 15.3% when back-tested over the past decade, outperforming many regional equity markets. Despite higher volatility, its risk-adjusted performance was strong.

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Political instability notwithstanding, Peru boasts one of the most stable economies in the region, with a Q2 2025 GDP five-year growth average of 3.2%, inflation at 1.1% and a BBB- Stable sovereign rating.¹ As a major copper producer, rising commodity prices have significantly boosted performance, with over 60% of total returns in the past five years attributed to the Materials sector (see Exhibit 2). Notably, five companies accounted for nearly 90% of the S&P Peru Select 20% Capped Index’s performance (see Exhibit 3).

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Essential Benchmarks

There are many benchmarks for the Peruvian equity market, which could make it challenging to choose the right one. The choice depends on one’s goals. Broad benchmarks like the S&P Peru Total Index reflect all listed companies, while the S&P Peru Select 20% Capped Index focuses on the largest, most liquid locally domiciled stocks.

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In conclusion, the Peruvian market, with fewer than 50 listed stocks, has demonstrated impressive performance over the past decade. The Materials and Financials sectors, capitalizing on the country’s rich natural resources, have driven this growth within a stable economic environment. Additionally, the benchmark will continue to tell the dynamic story of this developing market, while helping market participants align their tools with their investment goals.

¹ “Emerging Markets Monthly Highlights Fed Easing Supports Funding Conditions.” S&P Global Ratings. Data as of Sept. 18, 2025. Sovereign rating as of Sept. 9, 2025.

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