Some Big Hedge Funds Bought This ETF—Up 117% in a Year

It’s quite rare to see a big-name hedge fund picking up shares of an ETF, but whenever it does happen, there may be hints as to where opportunities may lie within a certain corner of the market. Indeed, picking individual names seems to be the better way to go as a professional money manager, but when it comes to international names, sometimes it is more efficient to go down the route of an ETF.

In this piece, we’ll check in on some big purchases that a few notable hedge funds, including Yacktman Asset Management, made in the back half of last year to secure their front-row seat to arguably the hottest international market out there: South Korea.

Undoubtedly, the South Korean stock market has been off to the races in the past year, gaining more than 177%, thanks in part to the memory chip shortage and the critical role that Samsung and SK Hynix play in the space.

Of course, there are plenty of other great South Korean firms that have contributed greatly to the ascent of the South Korean market in the past year. At the time of this writing, shares of the iShares MSCI South Korea ETF (NYSEARCA:EWY | EWY Price Prediction), which has to be the easiest and most efficient way to bet on the region, are up just shy of 18% year to date.

South Korea’s market might be primed for performance

With recent tech volatility, shares have slipped close to 5%, which may be more of an opportunity than anything else, especially for investors who want the perfect mix of reasonably-priced tech and diversification beyond the U.S. markets, which some consider to be overvalued. Indeed, the iShares MSCI South Korea ETF has been a big winner for the funds that bought over the last two quarters.

But the big question for investors today is whether it’s too late to follow the smart money into a market that’s running perhaps a bit too hot. The 0.59% management fee is also a bit hefty.

Though it is competitive as far as South Korea ETFs go. In any case, Samsung and SK Hynix are the stars of the show, contributing close to half (around 48% or so) of the ETF. So much for diversification! Still, these tech titans seem more like must-owns, rather than nice-to-haves, especially their unique role in the AI-driven memory boom.

There’s more to love about the South Korean market than just the hardware stars

While the other half of the ETF is also in some fairly well-known names, including Hyundai Motor, which has also been off to the races in recent months, thanks in part to an incredible robotics showing at CES 2026, I do think that the modest 19.27 times trailing price-to-earnings (P/E) multiple makes the basket of South Korean stocks a great place to be for those seeking momentum at a relatively reasonable price (MARP, if you will). 

As the South Korean RAM leaders ramp up production, I’d argue that there’s room for South Korea’s market to rally. Have a look at any of the top holdings in the iShares MSCI South Korea ETF, and odds are there are S&P-crushing gains in the past year. While I don’t like momentum chasing, I do think the broad index is worth exploring, perhaps on a pullback.

With the Nasdaq recently falling into half of a correction (6% dip) due to the software meltdown, while others hit the panic button over rising AI capex, perhaps there might be a broader tech rollover that drags down South Korea’s big two stars in memory. Perhaps that would be the perfect opportunity to pounce.

Personally, I’m more inclined to wait and see how the U.S. tech scene unfolds before looking to back up the truck on weakness. Could it be that the AI and non-AI bubbles are bursting at the same time? Only time will tell. Either way, it’s best to let things settle before getting too aggressive on weakness now that momentum has shown signs of reversing course.