Largest Korea ETF Sees Worst Money Outflow on Record Amid Crisis
- Traders pull $195.4 million from fund in week ended Aug. 21
- Short selling against the ETF tripled in past month to 2.2%
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The iShares MSCI South Korea Capped ETF, the largest exchange-traded fund tracking the country’s stocks, had the biggest weekly withdrawal since inception in 2000 amid investor concern over a revival of tensions on the Korean peninsula and an escalating selloff in emerging markets.
Traders pulled $195.4 million from the ETF, whose top holdings include Samsung Electronics Co. and Hyundai Motor Co., in the five trading days ended Aug. 21, according to data compiled by Bloomberg. The fund, which has $3.1 billion in assets, fell 7.2 percent in New York to an almost four-year low of $45.67 during the week and is down 27 percent from a high in April.