On July 21, iShares MSCI Korea ETF (EWY) rose 5.02% in regular trading, trading at $171.17/share, with turnover of $878 million. The rally came as the underlying Korean market rebounded sharply after weeks of intense deleveraging pressure.

JPMorgan stated that approximately 75% of leveraged ETF unwinding and over 50% of hedge fund deleveraging in Korean equities has been completed, suggesting the most severe selling wave has likely passed. The bank maintained its overweight rating on Korean stocks with a 12-month KOSPI target of 12,500 points, characterizing the recent drawdown as a technical washout rather than fundamental deterioration. Meanwhile, Citi maintained its 10,000-point KOSPI target implying over 50% upside, and Morgan Stanley noted multiple indicators suggest the index is approaching a bottom.

The KOSPI index itself rebounded 3.6% on the day, recovering from a 10.5% plunge over the prior two sessions. Korean regulators have announced measures to curb single-stock leveraged ETF trading from August, which is expected to reduce future volatility amplification. JPMorgan noted that AI capital expenditure cycles, earnings improvement, and governance reform narratives remain intact as long-term supports.

The fund generally invests at least 80% of its assets in the component securities of a free float-adjusted market capitalization-weighted index designed to measure performance of large- and mid-cap equity segments in Korea.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)