Are Korean ETFs In Trouble?

May 18, 2012

South Korean stocks have begun to be affected by all the macroeconomic problems in the eurozone and elsewhere, with the biggest ETF canvassing the dynamic Asian country nearing break-even levels for all of 2012, according to an article posted by Zacks.

The iShares MSCI South Korea Index Fund (NYSEArca: EWY) is near six-month lows, and small-cap stocks are faring even worse, the article said. The IndexIQ South Korea Small Cap ETF (NYSEArca: SKOR) has fallen more than 22 percent in the past six months, compared to EWY’s 2.5 percent decline.

The selling pressure this month alone has pulled EWY and SKOR down 10 percent and 8 percent, respectively, the article said.

Still, with both funds tilting toward tech and consumer stocks, they could prove good choices for investors looking for diversification, particularly if the U.S. economy maintains momentum and China avoids a hard landing, according to Zacks.

To learn more on Korea-based ETFs, go to

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