Wednesday, December 16, 2009

South Korea's ETF looks good

The Korea iShares EWY tracks the Morgan Stanley Capital International Index of the South Korean stock market. The EWY contains 18% of the Samsung Electronics. For sector holding, it has over 22% in industrial materials, over 21% in hardware and over 18% in financial services according to the Yahoo Finance portal.

Tom Lydon of ETFTrend.com (12-16-2009) stated that there are 7 reasons to feel good about South Korea's ETF.

"After the devastation brought on by the financial crisis, the South Korean economy, along with its related exchange traded fund (ETF), has been strengthening on fiscal stimulus and the government’s expansionary policies. The South Korean economy was able to climb out of its recession, expanding for three consecutive quarters, reports Kim Yoon-mi for The Korea Herald. Other reasons to like what South Korea is doing right now include:
  • The Ministry of Strategy and Finance revised up its growth forecast for the year to 0.25% and increased next year’s growth outlook to 5%. (Ways to get in on South Korea’s expansion).
  • Since April, the South Korean won has been steadily appreciating, gaining strength on the rising current account surpluses and the increase in overseas investors.
  • The nation’s external debts and short-term overseas borrowings have both decreased from an year earlier.
  • The surge in foreign investors has brought a swift recovery to the local stock market, with overseas investors net-buying $24 billion worth of stocks in the first 11 months of 2009 after suffering from a net-sale of $30 billion worth of stocks in 2008, according to financial industry data."
  • (click here for more detials)

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