iShares South Korea ETF Up 43.8% YTD in Emerging Markets Rally
The iShares MSCI South Korea ETF has gained 43.8% YTD, leading U.S.-listed country ETFs and outperforming Peru (25.1%) and Brazil (22.4%). Emerging markets ETFs have hit nine consecutive weekly gains—the longest since 2005—and EEM has outpaced the S&P 500 by 13 percentage points over two months.
1. Performance Highlights
The iShares MSCI South Korea ETF has climbed 43.8% year-to-date, making it the top-performing U.S.-listed country ETF. It has outpaced the MSCI Peru ETF (25.1%) and MSCI Brazil ETF (22.4%), reflecting strong inflows into South Korean equities.
2. Emerging Markets Rally
Emerging markets ETFs have recorded nine consecutive weekly gains—the longest streak since 2005—as investors rotate away from U.S. mega-cap tech. Over the past two months, the iShares MSCI Emerging Markets ETF has outperformed the S&P 500 by 13 percentage points, underscoring a shift toward cyclical and commodity-led sectors.
3. Macro and Valuation Drivers
A softer U.S. dollar, improving commodity prices and more attractive valuations in emerging markets are driving capital flows into South Korea. These conditions, coupled with geographic diversification strategies and early signs of dollar weakness, underpin the ongoing rally in EWY.