EWY: South Korea's Flagship ETF Sees Outflows Spike as Chip Leverage Trade Unwinds
The EWY ETF has seen substantial outflows as top South Korean stocks like Samsung Electronics and SK Hynix drop sharply.
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SK Hynix's selloff and the KOSPI plunge are pressuring South Korea ETFs. Here's how EWY, FLKR and leveraged KORU are positioned.
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The EWY ETF has seen substantial outflows as top South Korean stocks like Samsung Electronics and SK Hynix drop sharply.
SK Hynix plans a historic $720 billion investment through 2034 to triple its high-bandwidth memory (HBM) production capacity, addressing severe AI-driven memory shortages expected to persist through 2027 or longer. The company commands 58% of the global HBM market. Rather than investing directly in the volatile SK Hynix stock, investors can gain diversified exposure through ETFs like DRAM, IXUS, and EWY that hold SK Hynix alongside other AI memory leaders.
QQQ attracted $3.67 billion in ETF inflows while SPY saw $3.82 billion in outflows, as semiconductor ETFs also drew strong investor demand.
AI demand triggers historic memory crunch: TechInsights predicts DRAM prices will jump 200%+ as supply tightens through 2027.
Four U.S. companies filed investment reports totaling $2 billion for projects in South Korea's semiconductor and clean energy sectors.