Core Viewpoint - The iShares MSCI South Korea ETF (EWY) has reached a 52-week high and has increased by 200% from its 52-week low of $48.49 per share, indicating strong momentum in the fund [1]. Group 1: ETF Overview - The underlying MSCI Korea 25/50 Index includes stocks primarily traded on the Stock Market Division of the Korea Exchange, with the fund charging 59 basis points in annual fees [2]. Group 2: Drivers of Growth - South Korea ETFs are benefiting from the global AI boom, particularly due to strong demand for semiconductors and rising export momentum, with significant contributions from Samsung Electronics and SK Hynix [3][5]. - The ETF reflects strong investor confidence in Korea's AI-driven market outlook, supported by positive alpha and sustained earnings growth [3]. Group 3: Future Outlook - EWY is expected to maintain its strong performance in the near term, indicated by a positive weighted alpha of 189.19, suggesting potential for further gains [4].

Group 1: Shipping Industry Performance - The Breakwave Tanker Shipping ETF (BWET) and Breakwave Dry Bulk Shipping ETF (BDRY) have seen significant YTD gains of 100% and 31% respectively, driven by record crude oil tanker shipping rates and strong demand for dry bulk shipping [1][1][1] - Crude oil tanker rates nearly tripled over the last year, with a shortage of tanker vessels contributing to soaring rates in February [1][1][1] - South Korean shipping company Sinokor Group has gained a substantial share of the tanker market, controlling at least 120 VLCCs, which has driven up shipping costs [1][1][1] - Dry bulk shipping rates are rising due to strong demand for critical metals and limited vessel availability along key trading routes [1][1][1] Group 2: South Korean Market Performance - South Korea's KOSPI Composite has increased over 30% YTD, driven by strong performances from AI and semiconductor companies like Samsung Electronics (+51.5%) and SK Hynix (+35.89%) [1][1][1] - The new Presidential administration's pro-reform agenda aimed at increasing shareholder value has also contributed to market enthusiasm [1][1][1] - ETFs such as the iShares MSCI South Korea ETF (EWY) are up 37.8% YTD, with other ETFs like Matthews Korea Active ETF (MKOR) and Franklin FTSE South Korea ETF (FLKR) also showing strong performance [1][1][1] Group 3: Oil Services Sector - The oil services sector has benefited from a 20% YTD increase in energy prices, with earnings estimates improving due to better prospects for energy pricing [1][1][1] - Companies like SLB are leveraging AI and digital technology to enhance efficiency and productivity in a tight pricing environment [1][1][1] - ETFs such as the VanEck Oil Services ETF (OIH) and others are up more than 33% YTD, reflecting the positive trends in the oil services industry [1][1][1]

Core Insights - Emerging market ETFs are experiencing renewed interest, with two of the ten largest U.S.-listed ETF inflow winners being broad EM funds [1] - Low-cost passive strategies dominate ETF flows, but democracy-focused ETFs have outperformed traditional benchmarks [1] Emerging Trends in Emerging Markets - Investors are familiar with flagship broad emerging market ETFs like iShares Core MSCI Emerging Markets ETF (IEMG) and iShares MSCI Emerging Markets ETF (EEM), but there are over 100 products available [1] - A subset of emerging market ETFs incorporates human rights criteria, referred to as democracy-focused ETFs, which have generally outperformed core benchmarks [1] - In 2025, three out of five democracy-focused ETFs returned over 50%, while IEMG and EEM returned around 30% [1] - Year-to-date in 2026, four out of five democracy-focused ETFs are returning high teens to low double digits, compared to low teens for broader emerging market ETFs [1] - Higher allocations to countries like South Korea and Taiwan contribute to the stronger performance of democracy-focused ETFs [1] Opportunities in Democracy-Focused Emerging Market ETFs - The National Security Emerging Markets Index ETF (NSI) excludes companies that are national security threats or human rights violators, maintaining broad emerging market exposure [1] - The First Trust Emerging Market Democracies ETF (EMDM) tracks companies in emerging markets that meet minimum political rights and civil liberties standards [1] - The First Trust Emerging Markets Human Flourishing ETF (FTHF) focuses on companies in emerging markets with high Human Dignity Scores based on freedom metrics [1] - The OneAscent Emerging Markets ETF (OAEM) uses value-based screening to identify impactful investments while excluding harmful companies [1] - The Freedom 100 Emerging Markets ETF (FRDM) employs a freedom-weighting process to favor countries with stronger civil and economic institutions, avoiding exposure to China [1] Bottom Line - International equities, particularly emerging markets, are regaining attention, with a wider array of ETFs available to enhance international allocations beyond core holdings [1]

iShares MSCI South Korea ETF (EWY) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 169.60% from its 52-week low price of $48.49 per share.Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.EWY in FocusThe underlying MSCI Korea 25/50 Index consists of stocks traded primarily on the Stock Market Division of the Korea Exchange. The fund has double-digit ...

Core Insights - The ETF market experienced record net inflows of $166 billion in January 2026, surpassing the combined inflows of the previous three Januarys [1] - There is a significant shift from U.S. mega-cap stocks to international equities, with international equity ETFs attracting $68 billion in January, marking the first time they outpaced U.S. equity inflows since February 2023 [1] - The S&P 500 trades at approximately 22 times forward 2026 earnings, while international equities are closer to 13 times, indicating a potential for better returns from international markets [1] ETF Market Dynamics - International funds accounted for about one-third of net inflows despite representing only 17% of total ETF assets, with four of the top 10 most popular equity ETFs focusing on international markets [1] - Global ex-U.S. equity funds have seen their strongest inflow streak in four and a half years, driven by a rotation out of expensive U.S. tech stocks into more affordable international markets [1] Regional Performance - Emerging markets have shown strong performance, with three of the top 20 most popular ETFs being focused on these markets, including the iShares Core MSCI Emerging Markets ETF, which has attracted approximately $9 billion this year [1] - South Korean stocks have gained 28% year-to-date, with the iShares MSCI South Korea ETF seeing net inflows of around $1.7 billion [1] - European-focused ETFs have also seen strong demand, with inflows into both equity and bond funds surpassing those of U.S. counterparts [1] China and ADRs - Despite strong stock performance, China-focused ETFs have not seen significant inflows, although the KraneShares CSI China Internet ETF attracted over $2 billion last year [1] - The ADR market represents a $2 trillion opportunity, with U.S. institutions holding more than $800 billion, primarily in Chinese firms [1] - New ADR indexes have been developed to provide more precise access to international opportunities through U.S.-listed securities, allowing for better replication of returns from underlying indices [1]

Core Viewpoint - Brazilian equities are experiencing a significant resurgence, driven by rising commodity prices, a weakening U.S. dollar, and a shift towards emerging markets, with the iShares MSCI Brazil ETF (EWZ) outperforming U.S. equities by 17 percentage points in one month, marking its strongest performance in over four years [1][2]. Group 1: Performance Metrics - The iShares MSCI Brazil ETF (EWZ) has increased approximately 20% month-to-date, while the SPDR S&P 500 ETF Trust (SPY) has gained just under 3% [1]. - EWZ ranks as the third best-performing U.S.-listed country ETF over the past month, following the iShares MSCI Peru and Global Exposure ETF (EPU) and the iShares MSCI South Korea ETF (EWY) [2]. Group 2: Market Dynamics - The relative performance of EWZ compared to SPY has broken above a long-term downtrend, indicating a potential technical breakout that could attract more investment into Brazilian equities [2]. - Historical data shows that during the last major commodity supercycle from October 2002 to May 2008, Brazilian equities outperformed the S&P 500 by over 1,000%, highlighting their sensitivity to resource-driven bull markets [3]. Group 3: Expert Insights - Brazilian macro analyst Otavio Tavi Costa suggests that the breakout of Brazilian equities is part of a larger global market shift, emphasizing the connection to the recent decline of the U.S. dollar [6][8]. - Analysts at 22V Research express a bullish outlook on Brazil, favoring emerging markets driven by commodities and materials sectors, and highlighting the continued weakness of the U.S. dollar as a catalyst for outperformance [9][10]. Group 4: Sector Composition and Investment Sentiment - The sector composition of EWZ aligns with favored investment themes, particularly in materials, energy, and banks, which are expected to benefit from the current market dynamics [12]. - Brazil has been structurally underowned and underperforming, creating a potential for significant momentum as capital begins to flow back into the market [13].

Core Insights - Wall Street faced significant volatility in 2025, while international markets showed stability or growth, driven by trade uncertainties under Trump's administration impacting the U.S. economy more severely than international markets [1] U.S. & International ETF Performance - Roundhill Magnificent Seven ETF (MAGS) increased by 25.5%, SPDR S&P 500 ETF Trust (SPY) rose by 18.1%, Invesco QQQ Trust (QQQ) gained 22.3%, and SPDR Dow Jones Industrial Average ETF Trust (DIA) advanced 14.9% in 2025 [2] - Vanguard Tax Managed Fund FTSE Developed Markets ETF (VEA) increased by 31.6%, iShares Asia 50 ETF (AIA) surged by 44%, iShares MSCI Emerging Markets ETF (EEM) rose by 31.2%, iShares MSCI Eurozone ETF (EZU) jumped by 37.4%, and iShares MSCI ACWI ex US ETF (ACWX) grew by 29.7% [3] Drivers of International ETFs - U.S. tech stocks, particularly the "magnificent seven," faced overvaluation concerns, impacting tech-centric indexes negatively, while European markets like STOXX Europe 600 benefited from a more balanced structure with top 10 stocks comprising only 17% of the index [4][5] - International markets were generally undervalued compared to U.S. stocks, with EZU's P/E ratio at 17.83X compared to Vanguard S&P 500 ETF (VOO) at 29.19X [6] - P/E ratios for various international ETFs include iShares MSCI Japan ETF (EWJ) at 16.40X, EEM at 15.85X, iShares China Large-Cap ETF (FXI) at 10.79X, iShares India 50 ETF (INDY) at 22.11X, and iShares MSCI Brazil ETF (EWZ) at 10.69X [7] Economic Stimulus and Policy Differences - The European Central Bank initiated rate cuts earlier in 2025 but halted further easing due to trade uncertainties, while India and China pursued policy stimuli [8] - The U.S. adopted a contrasting approach with budget cuts and reduced federal expenditures, with the Federal Reserve enacting three rate cuts since September [9] Top-Performing Country ETFs - iShares MSCI South Korea ETF (EWY) rose by 92.3% and Franklin FTSE South Korea ETF (FLKR) increased by 88.0%, driven by accommodative monetary policy and economic growth [12] - Global X MSCI Greece ETF (GREK) increased by 79.2%, supported by strong economic growth and an upgrade to developed market status [14] - iShares MSCI South Africa ETF (EZA) rose by 77.9%, with growth in the mining industry contributing to economic expansion [16] - iShares MSCI Spain ETF (EWP) increased by 77.5%, benefiting from a resilient labor market and gains in banks [17] - iShares MSCI Poland ETF (EPOL) rose by 76.7%, supported by protection from global trade tensions and fiscal stimulus from Germany [18]

Group 1 - The iShares MSCI South Korea ETF (EWY) has been affected by selling pressure in the technology sector, which constitutes nearly half of the fund's allocation [1] - The top two positions in the EWY fund account for approximately 40% of its total allocation [1] - Despite the recent challenges, EWY remains the best performing ETF among 45 country-specific ETFs [1]

Market Overview - Wall Street experienced a positive week with the S&P 500 increasing by 1.7%, the Dow Jones rising by 1.6%, and the Nasdaq Composite up by 2.1%, marking the best week for the S&P 500 since August [1] - Despite initial concerns over a regional banking crisis, the market rebounded to close the week with gains [1] Regional Banking Sector - U.S. regional bank stocks faced significant declines on October 16, 2025, with Zions Bancorporation dropping by 13% and Western Alliance Bancorporation falling nearly 10% due to losses from troubled business loans [2] - The SPDR S&P Regional Banking ETF (KRE) lost 6.2% on the same day but recovered with a 1.6% gain on October 17, indicating a level of market complacency [2] U.S.-China Trade Relations - The ongoing U.S. government shutdown has become the third-longest funding lapse in history [3] - Trade tensions between the U.S. and China persist, with President Trump announcing a 100% tariff on Chinese goods starting November 1 in response to China's export controls on rare earth minerals [3] - Trump's remarks that high tariffs on Chinese goods are "not sustainable" may have provided some optimism to investors, despite mixed signals from both countries regarding the trade dispute [4] Winning ETF Areas - The ProShares Short Bitcoin ETF (BITI) increased by 7.5% last week, while Bitcoin prices fell by about 4% due to fluctuating risk-on sentiments [6] - The iShares MSCI South Korea ETF (EWY) rose by 6.2%, driven by optimism over U.S.-Korea trade progress and Samsung Electronics' $110 million investment in U.S. biotech firm Grail [7] - The SPDR S&P Semiconductor ETF (XSD) gained 4.7%, benefiting from the AI boom as semiconductor companies secured significant deals with AI firms [8] - The Roundhill AMD WeeklyPay ETF (AMDW) increased by 4.5%, with AMD shares gaining about 6% after securing major AI deals, including one with Oracle for MI450 chips [9][10] - The SPDR S&P Kensho Clean Power ETF (CNRG) rose by 3.5%, supported by easing policy concerns in the alternative energy sector and increased demand for energy amid the AI boom [11][12]