EWY: 40 Points Ahead Of SOXX, But There's A Catch

Lumen Research 537 Followers Follow Summary iShares MSCI South Korea ETF (EWY) is up 148% YoY, driven by heavy concentration in Samsung and SK hynix, both benefiting from strong AI memory demand. Nearly half of EWY is exposed to two companies, making the ETF highly sensitive to the memory cycle and AI infrastructure spending trends. I rate EWY a Hold, as further upside depends on continued tight HBM supply and robust Korean exports, but risk/reward is less compelling after the rally. FLKR offers broader Korea exposure, lower fees, and similar returns, making it a preferable alternative for investors seeking diversified South Korea access. GoranQ/iStock via Getty Images The iShares MSCI South Korea ETF ( EWY ) has returned 147.83% over the past year, more than 40 percentage points ahead of the iShares Semiconductor ETF ( SOXX ), which is an unusually strong result This article was written by Lumen Research 537 Followers Follow I am a corporate finance professional with over ten years of experience in financial planning, capital budgeting, and risk assessment. As a long-term investor, I invest exclusively in funds and do not pick individual stocks. My approach is evidence-based: low costs, broad diversification, strategic asset allocation, and patience through market cycles. My motivation for writing is twofold: first, to help other long-term investors, especially women and those new to fund investing. I focus on what truly drives returns: costs, diversification, and time in the market. Second, to bring rigorous, data-driven fund analysis to a platform often dominated by single-stock commentary. I write to learn, share, and build a community of patient investors who value sleeping well at night over chasing short-term gains. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.