iShares MSCI South Korea ETF

EWY

Market cap $18.8B

When conflict escalates, investors typically move toward defensive assets such as U.S. Treasuries, gold, or large-cap domestic stocks. However, when a ceasefire is announced, risk appetite returns quickly.

Value, dividends, small-cap, international, and defensive stocks have all beaten the S&P 500 by a wide margin this year. Given how long they've been out of favor prior to 2026, an extended stretch of outperformance here seems more than likely.

Funds with ties to the AI boom in emerging markets like South Korea, Taiwan and Peru could make a run-up to rival the Magnificent Seven

iShares MSCI South Korea ETF offers targeted exposure to Korea's high-tech exporters and the AI-driven memory chip supercycle. EWY benefits from structural catalysts: memory chip demand, corporate governance reforms, and potential MSCI reclassification to developed market status. Valuation is elevated at 22.37x PE versus historical averages, but semiconductor-driven earnings power and governance reforms support a bullish outlook.

I initiate a Strong Buy on iShares MSCI South Korea ETF, driven by a structural AI memory supercycle and corporate reforms. EWY offers concentrated exposure to SK Hynix and Samsung Electronics, capturing margin-expanding DRAM/NAND price surges and outsized earnings growth. South Korea's Value-Up reforms and dividend tax cuts are narrowing the Korea discount, supporting multiple expansion and improved capital returns.

South Korea ETFs at a crossroads -- chip-led rebound meets geopolitical risk as AI optimism clashes with Iran war uncertainty.

It isn't just oil prices. Korean stocks depend as much on global sentiment around artificial intelligence.The country is home to two of the top three memory-chip producers.

Korea (KOSPI/EWY) presents a compelling asymmetric opportunity as the energy shocks and leverage unwind reverse, stabilizing risk assets. Temporary de-escalation in the Iran conflict has eased oil prices, improving Korea's margins, currency, and market sentiment. Korea's core AI supply chain exposure — via companies like Samsung Electronics and SK hynix — positions it to benefit from the unfolding AI Capex cycle.

Some of the most remarkable performers of the past year aren't even listed on the NYSE or Nasdaq.

Bearish signals intensify for EWY as momentum weakens, putting key support zones at risk while a breakdown could open the door to deeper corrective downside.