AI Storage Supercycle Drives Korean Equity Bull Market; Xtrackers MSCI Korea UCITS ETF (02848.HK) Gains 83.08% Year to Date, Sharply Outperforming the Hang Seng Index

NewTimeSpace News:Xtrackers MSCI Korea UCITS ETF (02848.HK) is a product under DWS Investment, launched in July 2007 and listed in Hong Kong on 8 July 2009, with a total expense ratio of 0.45%. It tracks the MSCI Korea 20/35 Custom Index, is denominated in USD and traded in HKD, and adopts an accumulating structure with no dividend distribution. On performance, the ETF rose 83.08% year to date, 34.72% over the past six months, 134.29% over the past year and 200.95% over the past two years, while the Hang Seng Index returned -4.00%, -4.89%, -8.56% and +39.32% over the same periods and peer funds returned 70.13%, 28.81%, 105.74% and 169.99%, leaving the ETF sharply ahead across all four periods. As of 16 September, net asset value stood at about USD 661 million; on 18 September the ETF closed at HKD 1,805.5, up 1.43%, after peaking at HKD 1,969 earlier in September, while falling 4.49% in a single day on 14 September, pointing to heightened short-term volatility. On holdings, the top ten positions totalled about USD 386 million, roughly 58% of net asset value: Samsung Electronics at about 25% and SK Hynix at about 15.9% led, followed by Samsung Electro-Mechanics (including preferred shares) at about 6.3% and SK Square at about 5.0%, together with Hyundai Motor, KB Financial and Shinhan Financial; on 21 September, Korean stocks closed with Samsung Electronics up 4.79%, SK Hynix up 0.32% and Hyundai Motor down 1.78%.

On the news front, the positives: the KOSPI climbed from a low of 2,284.72 on 9 April 2025 to a high of 9,385.59 on 19 June 2026, a maximum gain of 311% in 14 months. After a deep correction in late June, the index surged nearly 18% in a single day on 31 July to close at 6,595.45, with SK Hynix and Samsung Electronics jumping 29.95% and 26.81% respectively. SK Hynix has begun mass shipments of HBM4 and signed long-term supply agreements with 10 major customers, and expects third-quarter DRAM shipments to rise about 10% quarter on quarter; 24-hour foreign exchange trading in Korea took effect on 6 July, and the market expects Korea to enter the MSCI developed-market watch list in June 2027 with a formal announcement in 2028, which could bring incremental foreign capital. The KOSPI's 12-month forward price-earnings ratio is only about 5 times, a low not seen in more than 20 years, while Samsung Electronics and SK Hynix trade at 2026 forward P/Es of just 6.5 times and 8.5 times. On the downside: the KOSPI triggered circuit breakers multiple times since June, and Samsung Electronics and SK Hynix at one point fell 42.9% and 54.7% from their peaks; the United States is pressing Korean companies to expand capacity in the US and has threatened tariffs of up to 100%; institutions warn that the index may trade in a 6,000-7,000 range in the near term, with selling pressure from profit-taking and break-even selling still present.

The ETF tracks the MSCI Korea 20/35 Custom Index, which layers custom constraints onto the MSCI Korea Index — a 35% cap on any single constituent and a 20% cap on each of any two constituents — preserving high exposure to semiconductor leaders while moderately diversifying concentration risk. The fund adopts a full replication strategy and may engage in securities lending of up to 30% of net assets to enhance returns. As a UCITS ETF listed in Hong Kong, it gives investors one-stop exposure to global memory leaders such as Samsung Electronics and SK Hynix without opening a Korean stock account; a 0.45% fee and more than 17 years since listing reflect a mature operation, while the accumulating structure automatically reinvests returns. It suits aggressive investors who are bullish on the AI storage supercycle and a re-rating of Korean equities and can tolerate high volatility. Risk warning: for reference only; this is not investment advice; past performance does not guarantee future results; invest with caution. (Data source: ROYALFLUSH INFO iFinD, as of 21 September 2026)

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