The Next Election ETF Investors Should Watch

Barely a month removed from the U.S. mid-term elections, there's another election on the horizon that investors in emerging markets and metals ETFs should keep an eye on and the answer may be a surprise: Peru.The iShares MSCI Peru All Capped Index Fund (NYSE: EPU) has surged almost 58% this year, so it's hard to say that investors continue to overlook South American investment opportunities beyond Brazil.There's good reason why Peru, quiet as it has been kept to some, has been a market juggernaut this year. When a country is one of the world's largest producers of gold, silver and copper and all of those metals are in a bull market at the same time, the country is going to benefit.Peru has and with EPU essentially being a materials or metals ETFs dressed as a country-specific ETF, it's easy to see why EPU has performed so well.The recipe for continued success for EPU is easy to spot: In the near-term, the ETF needs to clear a long-term uptrend line that ends around $51.In the medium-term, Peru must follow in the footsteps of Brazil, Chile and Colombia and find the most centrist candidate of the four running for president. Look at it this way: More Lula (Brazil), less Chavez (Venezuela) equals more foreign investment for Peru and more good times for EPU in 2011.