EWY - EWY Set To Gain From Current Semiconductor Upcycle Led By SK Hynix Samsung
2024-07-27 07:01:36 ET
Summary
- The Korea-focused EWY ETF remains one of the best ways to gain exposure to chip giants Samsung and SK Hynix.
- Potential verification by Nvidia for Samsung’s HBM3E memory will boost EWY’s return.
- EWY stocks remains attractive value-wise at 13.4 time earnings and 1.1 times book value.
- The current government seems intent to boost returns for retail investors, including through Corporate Value-up programme.
The iShares MSCI South Korea ETF ( EWY ) remains a very attractive value play in the ongoing semiconductor upcycle and one of the best ways to gain exposure to chip giants Samsung Electronics (SSNLF) and SK Hynix (HXSCF), the world’s two biggest memory chip makers. Both Samsung Electronics and SK Hynix are listed on the Korea Exchange and do not offer ADRs trading on the US exchanges as they are only accessible through the Pink Sheets OTC market, or indirectly through ETFs. EWY is the biggest Korea-focused ETF with $5.4bn AUM, dwarfing the $189mn managed by the Franklin FTSE South Korea ETF ( FLKR ) and the closed-end Korea Fund ( KF ) with $135mn AUM....
EWY Set To Gain From Current Semiconductor Upcycle Led By SK Hynix, Samsung