South Korea ETF Soars 122.9% YTD on AI Chip Surge
EWY•iShares MSCI South Korea ETF (EWY) surged 122.90% YTD in H1 2026, driven by AI chip demand lifting Samsung Electronics and SK Hynix share prices. This outperformance ranks EWY among top global ETFs, outperforming Franklin FTSE South Korea ETF’s 118.28% gain.
1. H1 2026 Performance Overview
iShares MSCI South Korea ETF (EWY) delivered a 122.90% gain through the first half of 2026, making it the top-performing country ETF globally. This surge contrasts with most equity markets and follows a broader trend of divergence across ETF categories, including energy and semiconductors.
2. AI Chip Demand Catalyst
South Korea’s equity rally was propelled by AI infrastructure buildout, with Samsung Electronics and SK Hynix—major components of the MSCI South Korea index—rising on high-bandwidth memory chip orders. Strong semiconductor demand lifted both local chipmakers and overall market sentiment.
3. Comparative Outperformance and Outlook
EWY edged past Franklin FTSE South Korea ETF’s 118.28% YTD gain, highlighting its liquidity and index composition advantages. Investors should weigh semiconductor sector concentration against potential geopolitical and valuation risks heading into H2 2026.
