Is it time to take chips off the table in South Korea (EWY)?
October 27th at 2:11pm by Tom Lydon
Samsung, POSCO, Korea Electric Power and SK Telecom – these 4 companies make up 50% of the market capitalization of the South Korean stock market. These same companies make up 40% of the iShares MSCI South Korea Index (EWY) exchange traded fund. Although the ETF is not diversified, these companies are doing pretty well globally, and the ETF is up 25% this year. The South Korean economy may suffer as China becomes more of a competitor, but these companies may still hold up in the global arena. This just shows, it’s important to understand what you are getting when buying into a fund.
