EWY Stock Recent News

Shanghai CSI 300 has gone from a 52-week low to a 52-week high in only a couple of weeks. Other than China and Hong Kong, Australia is the only other international market starting the week at a 52-week high.

The Korea-focused EWY ETF remains one of the best ways to gain exposure to chip giants Samsung and SK Hynix. Potential verification by Nvidia for Samsung's HBM3E memory will boost EWY's return. EWY stocks remains attractive value-wise at 13.4 time earnings and 1.1 times book value.

Equities here in the US have gotten off to a weak start this month, with the S&P 500 down modestly over the past couple of sessions. The US-traded ETF that tracks Mexican stocks is down 8.3% month-to-date and 12.3% year-to-date.

The U.S. economy is strong and is benefiting a great deal from the energy transition and the advent of artificial intelligence. Indeed, the Federal Reserve estimates that the economy will grow at a very rapid annualized rate of 3.5% this quarter.

The iShares MSCI Korea ETF is a tech-heavy fund with over $5 billion in assets, making it the largest South Korea-focused ETF. EWY is heavily weighted towards tech giants like Samsung and SK Hynix, and is currently trading at attractive valuation multiples. The South Korean government's $7 billion investment in AI and semiconductors could serve as a strong tailwinds for the fund.

From 2024's low in mid-January to its high in mid-April, the MSCI Emerging Markets Index gained more than 10%, providing investors with some of the emerging markets best returns in the past few years and giving investors a reason to buy emerging markets ETFs for the first time in a long while.  The index represents 24 emerging markets countries, accounting for 85% of each country's free float-adjusted market capitalization.

iShares MSCI South Korea ETF provides exposure to Korean markets, with a focus on semiconductors dominated by Samsung. DRAM prices are increasing, benefiting Samsung and SK Hynix, even though we are worried about the ongoing glut in semiconductors and general demand. Hawkish policies benefit financials right now, and strong exports due to a still weak Won benefit consumer discretionary exposures like automotive.

FLKR: Korea Could Be This Year's Sleeper Hit As 'Value Up' Catalyst Looms

Korea's plan to apply the Japanese playbook has received a rather lukewarm market response so far. Even after last year's rally, Korean large-cap valuations remain inexpensive. Ahead of a potentially catalyst-rich next few months, the iShares MSCI South Korea ETF screens attractively.

Goldman Sachs is bullish on South Korea. The research house believes that the market will offer the highest earnings growth next year.