BlackRock’s US-listed iShares MSCI South Korea ETF drew more than US$1.1 billion on July 16 after taking in a record US$814 million a day earlier, as investors sought exposure to SK hynix, the South Korea-based memory chipmaker, through the fund.

EWY allocates roughly a quarter of its portfolio to the Seoul-listed company.

EWY has gathered more than US$6.3 billion this year.

SK hynix American depositary receipts traded at around a 27% premium to the Korean shares on July 17 in New York after reaching a record 51% a day earlier.

Investors were chasing a company that holds about 60% of the high-bandwidth memory market, according to Counterpoint data.

EWY is non-diversified, with large-cap stocks carrying outsized weightings.

Fuller fungibility between SK hynix’s US and Seoul listings would help keep prices aligned by enabling arbitrage.

🔗 Source: Bloomberg

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