U.S. investors aren’t so enamored with the South Korea ETF as President Donald Trump meets with North Korean leader Kim Jong Un.
U.S. investors didn’t show much faith in Trump as investors pulled cash out of EWY, the largest U.S.-listed South Korea-related ETF. The iShares MSCI South Korea Capped ETF (NYSEArca: EWY) experienced $33 million in net outflows over the past week, according to XTF data. EWY was down 1.1% Tuesday on relatively subdued trading activity, with 1.7 million shares changing hands, compared to its 2.6 million daily average.
South Korean officials are optimistic that the meeting between the U.S. and North Korea will help pave the way to an end to the world’s last remaining cold war and the division across the Korean peninsula, reports Caroline Wilson for Bloomberg.
However, there is no real concrete resolution as U.S. Secretary of State Mike Pompeo insisted that sanctions against North Korea will remain in place until the reclusive state abandons its nuclear weapons.
ETFs to Play Geopolitical Sports
Bloomberg Intelligence analyst Eric Balchunas argued that traders look to single-country ETFs, like EWY, as a way to play global events like a “geopolitical sports book.”