KF - EWY: South Korean Equities Could Outperform U.S. Equities As The Global Economy Rebounds

• South Korean equities seem to have underperformed U.S. equities for years, as the latter have been especially popular internationally.
• However, South Korea has grown into what can now be considered a technologically sophisticated, and developed, economy.
• With China and other faster-growing Asia-Pacific nations being key export partners, South Korea stands to outperform slower-growing Western nations.
• We can also make the assessment that the South Korean won is probably undervalued against USD, and probably also against EUR.
• Considering EWY's favorable sector concentrations (which stand to benefit through a new business cycle), a possible FX tailwind also supports EWY as an attractive option for international diversification for U.S. investors.

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