FKLR, EWY Surge 120%+ Amid AI Stock Declines
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- XSW fell more than 17.9% year‑to‑date.
- IGV is down 20.1% year‑to‑date.
- Microsoft dropped 15% YTD, while Amazon and Tesla fell 9.6% and 6.13% respectively.
- Samsung and SK Hynix are two of three firms producing AI‑capable flash memory at scale, with Micron lagging both in production.
- Korea Discount keeps South Korean stocks undervalued due to chaebol control, but foreign capital inflows are raising P/E ratios.
- FKLR holds 41% Samsung and SK Hynix, has a 0.09% expense ratio, and is up more than 120% over the past year.
- EWY holds 47.3% Samsung and SK Hynix, has a 0.59% expense ratio, and is up 131% over the past year.
Why it matters: Software‑focused investors lose as AI model spending drags down XSW and IGV, while investors in Korean memory ETFs gain from the premium on Samsung and SK Hynix as AI‑driven demand for high‑bandwidth flash spikes; the Korea Discount keeps valuations low, so foreign capital inflows raise P/E ratios and boost ETF returns.
