iShares MSCI South Korea ETF (EWY) was on the rise Thursday after BlackRock (BLK), the world’s largest asset manager, highlighted the potential of the South Korean market. The firm upgraded emerging market stocks, citing South Korean stocks as one of the major factors behind this decision. BlackRock’s stance makes a solid argument for buying EWY.
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BlackRock’s interest in South Korean stocks has to do with the ongoing AI boom. The country is firmly tied to the tech sector supply chain. It produces many of the chips and other components that are used in AI data centers. This makes it a key contributor to the AI market and warrants BlackRock’s praise of the sector.
iShares MSCI South Korea ETF is related to this as it is designed to track the investment results of South Korea’s MSCI Korea 25/50 Index. The ETF typically invests about 80% of its assets in the major securities of the index. Investors will also note that the MSCI Korea 25/50 Index is a free float-adjusted market capitalization-weighted index created to measure the large and mid-cap sectors in South Korea.
iShares MSCI South Korea ETF Movement Today
The iShares MSCI South Korea ETF was up 2% on Thursday, extending a 50.87% rally year-to-date. The ETF has also increased 170.08% over the past 12 months. These gains show that investors might benefit from taking a stake in the ETF alongside BlackRock’s latest praise for South Korea.
Is iShares MSCI South Korea ETF a Buy, Sell, or Hold?
Turning to the TipRanks technical analysis tool, traders can gain additional insight into the iShares MSCI South Korea ETF that may help them determine if the ETF is worth adding to their portfolio. The Overall Consensus for EWY is Buy, based on five Bearish, one Neutral, and 16 Bullish indicators.
