BlackRock's Korea ETF Sees Record $1.1B Inflow on July 15 as SK Hynix ADR Trades at 27% Premium

According to Bloomberg data, BlackRock's iShares MSCI South Korea ETF (EWY) attracted inflows of $1.1 billion on July 15, with the prior day also marking a record single-day inflow of $814 million. The surge reflects investors shifting from SK Hynix's newly listed U.S. ADR, which trades at a significant 27% premium to Korean-listed shares.

With roughly one-quarter of EWY's holdings in SK Hynix, the ETF has become a key avenue for overseas investors to gain exposure to the memory chip maker while avoiding ADR pricing disparities. The premium persists because ADR conversion mechanisms remain restricted through month-end; investors cannot currently arbitrage between the ADR and Korean-listed shares. Year-to-date, EWY has accumulated $6.3 billion in inflows, with assets surging over 180% to approximately $23 billion.