BlackRock Korea ETF nets $10 billion, extending weekly inflow streak

BlackRock's iShares MSCI Korea ETF absorbed more than $10 billion in the week through July 24, extending a three-week inflow streak that brought July's total to $37 billion — on pace for the fund's largest monthly haul on record.

The buying comes as global investors rotate into beaten-down semiconductor plays, with the iShares Semiconductor ETF and the Roundhill Memory ETF pulling in a combined $4.1 billion last week, according to Bloomberg-compiled data. US-listed ETFs overall added more than $46 billion during the period, pushing year-to-date inflows to nearly $1.15 trillion.

The $10 billion weekly inflow pushed the fund's July total to $37 billion, putting it on track to surpass the prior monthly record. The ETF, which tracks South Korean equities, has seen its assets under management swell to $22.4 billion — a 13.5% increase in a single week. The inflows come even as the fund's shares have fallen 28% from a record high set June 18, driven by a steep decline in Samsung Electronics and SK Hynix, the two largest makers of high-bandwidth memory chips.

The sustained capital flows point to strong institutional conviction in Korean equities, particularly the AI and semiconductor supply chain, as investors bet the selloff has overshot ahead of earnings from global tech bellwethers. If the dip-buying thesis holds, the KOSPI could see a sharp recovery; if profit-taking accelerates after the earnings reports, the ETF could face renewed pressure.

The buying pattern mirrors a broader trend across equity ETFs last week. US equity funds led with $25.1 billion in inflows, while international equity ETFs pulled in $11.1 billion. US fixed-income funds took in $3.9 billion. Commodities were the outlier, shedding $115 million. The buying came even as the S&P 500 fell about 1.6% for the week, with a selloff in high-flying technology stocks — semiconductors especially — weighing on the index.

The iShares Semiconductor ETF (SOXX) pulled in $2.4 billion last week, while the Roundhill Memory ETF (DRAM) — which has lost as much as 40% from its highs — absorbed $1.7 billion. The Invesco Nasdaq 100 ETF (QQQM) took in another $1.1 billion from investors seeking broader tech exposure. The coordinated buying across chip-focused funds suggests investors view the semiconductor pullback as a tactical entry point rather than the start of a prolonged downturn.

The Korea ETF's inflows stand out even within the broader market context. EWY's $3 billion weekly inflow in the prior week already ranked among the top creations across all US-listed ETFs, and last week's $10 billion haul more than tripled that pace. The fund now manages $22.4 billion in assets, up from roughly $16 billion at the start of July.

The 28% drawdown from the June peak marks the ETF's steepest correction since the 2022 tech rout, when rising rates compressed valuations across the sector. During that downturn, EWY took roughly five months to recover similar losses. The current dip-buying suggests investors expect a faster rebound this time, supported by AI-driven demand for high-bandwidth memory chips used in Nvidia's data center GPUs.

On the other side of the ledger, the iShares Russell 2000 ETF shed $1.6 billion, the iShares iBoxx Investment Grade Corporate Bond ETF lost $775 million, and the SPDR Gold Shares gave back $450 million. The Invesco MSCI North America Climate ETF saw the largest percentage decline, losing 16.8% of its assets.

This article is for informational purposes only and does not constitute investment advice.