However, investors have pulled over $292 million from EWY even as the ETF has surged. Although those inflows to South Korean stocks have recently supported the won, some market observers believe the Bank of Korea can cut interest rates again to defend the country’s exporters. BOK pared rates to a record low of 1.75% last month. [Rate Cut Doesn’t Stir South Korea ETFs]

The Deutsche X-trackers MSCI South Korea Hedged Equity ETF (NYSEArca: DBKO) and the WisdomTree Korea Hedged Equity Fund (NasdaqGM: DXKW) are up an average of 9.6% this year.

Investors are starting to embrace non-Japan currency hedged single-country ETFs, though those affections have been limited to Germany funds, including products from Deutsche Asset & Wealth Management and WisdomTree.

For example, DBKO had just over $64 million in assets under management the day BOK cut rates, but the ETF’s AUM tally has doubled in just over a month. The ETF is now home to nearly $127 million in assets of which $116.3 million has flowed into the fund this year.

Horizons Korea KOSPI 200 ETF