Related: How South Korea is Critical to The Global Economy
EWY allocates 40.7% of its weight to technology stocks, by far the ETF’s largest sector allocation. Financial services and consumer discretionary names combine for 26% of the fund’s roster. Data suggest some traders have recently been building short positions in the South Korea fund.
“Likewise, short interest on EWY vaulted 53.6% higher over the past two reporting periods to stand at 6.24 million shares,” notes Schaeffers. “That’s the largest accumulation of EWY short interest since January 2016 — and it’s important to note that the short interest peak attained nearly two years ago roughly coincided with EWY’s 2016 lows. As the shorts covered their shares in the weeks and months that followed, EWY embarked on the uptrend that has most recently culminated in Friday’s new 10-year price peak.”
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