Related: South Korea ETF Slump May be Short
The recent dip in South Korean stocks has emboldened traders to buy that dip.
“Investors have so far viewed the situation as a buying opportunity. The 157 globally-listed ETFs with South Korean exposure have experienced over $430m of inflows so far in August. These inflows build on those experienced over the last three months, setting the asset class on track to register its largest inflow streak since the second half of 2014,” according to Markit.
EWY is down 1.7% over the past week, but the ETF is higher by 27% year-to-date. South Korea, Asia’s fourth-largest economy, is the second-largest country weight in the widely followed MSCI Emerging Markets Index behind China. South Korea is 14.5% of that index.
For more information on the South Korean markets, visit our South Korea category.