iShares MSCI South Korea ETF

EWY

Market cap $16.1B

South Korea ETFs are surging as AI-driven semiconductor demand fuels market highs, strong earnings momentum and bullish outlook for Korean equities.

iShares MSCI South Korea ETF (EWY) hits a new 52-week high as AI-driven semiconductor demand and strong momentum boost Korea-focused equities.

Market predictions are not easy to make and looking at the YTD winners, there are some head-scratchers.  Let's take a closer look and make some sense out of the recent performance winners: wet and dry shipping; South Korea; and oil services ETFs.

The iShares EWY ETF gives American investors strong exposure to two of the leading global memory-chip makers: Samsung and SK Hynix, which are nearly 50% of the entire portfolio. Both companies are benefiting from a memory-chip shortage that is responsible for a surge in prices for HBM, DDRAM, and NAND memory chips. Much like Taiwan and the huge influx of foreign capital to semiconductor maker TSMC, the surge of capital into South Korea's chip-makers will a spill-over effect on the economy.

Kospi, South Korea's benchmark index, hit an all-time high above 5,600 on Thursday, after gaining about 3.09% in a single trading session. South Korea remains one of Asia's most lucrative markets, with the Kospi surging 79.35% over the past six months and 115.54% over the past year.

Emerging market ETFs are back in focus. Two of the ten largest U.S.-listed ETF inflow winners year-to-date are broad EM funds.

The S&P 500 is off to a dismal start in 2026, lagging most developed-market indexes as investors pull back from U.S. tech stocks with elevated valuations.

South Korea, via the iShares MSCI South Korea ETF (EWY), has dramatically outperformed US indices over the past year, driven by semiconductor sector momentum. EWY remains attractively valued relative to US benchmarks, trading at a P/E of 19 and P/B of 2.23, despite the recent surge.

iShares MSCI South Korea ETF EWY is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 169.60% from its 52-week low price of $48.49 per share.

There's no stopping the momentum in the ETF market. January 2026 brought a record $166 billion in net inflows, surpassing the last three Januarys combined.