If you were expecting the G20 to end with a free trade deal between the United States and South Korea, you were left wanting. But the lack of a deal shouldn’t hurt the South Korea exchange traded fund (ETF).
The trade deal would have expanded American exports of automobiles and beef. Sheryl Gray Stolberg for The New York Times reports that White House officials said that the president would rather suffer a one-day loss of face in South Korea than bring back a deal that wouldn’t pass muster in Congress. [5 Reasons to Watch South Korean ETFs.]
All that aside, the fact that South Korea played host to the G20 says a lot about its economy and their presence on the global stage. It says even more that the country is the first member of the G20 that wasn’t first a member of the more exclusive G8, Evan Ramstad for The Wall Street Journal reports.
If it’s not already there, South Korea is certainly flirting with “economic powerhouse” status. In the last six months, the ETFs that reflect the economy – iShares MSCI South Korea Index (NYSEArca: EWY) and IQ South Korea Small Cap ETF (NYSEArca: SKOR) – have been reflective of that, too.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.