Traders Get Defensive With North Korea ETF

Amid escalating geopolitical drama between the U.S. and North Korea, some traders are getting defensive with the iShares MSCI South Korea Capped ETF (NYSEArca: EWY). EWY is the largest US-listed exchange traded fund tracking stocks in South Korea, Asia’s fourth-larges economy.

Home to $3.8 billion in assets under management and more than 17 years old, EWY is one of the largest and old single-country ETFs in the U.S. This year, it is also one of the best-performing individual country ETFs as highlighted by a year-to-date of nearly 30%.

“However, on Tuesday, the ETF’s shares fell nearly 1 percent, moving in concert with a weakening of the U.S. dollar and a decline in the U.S. benchmark S&P 500 stock index,” reports Reuters. “While news of potential miniaturization of a nuclear device by North Korea was cited in a Japanese Defense Ministry annual report earlier on Tuesday, the decline in global markets during U.S. trading hours coincided with a report from the Washington Post.”