EWY Surged 7.61% Friday as Risk Led ETFs

South Korea EWY surged 7.61% on Friday, the day’s dominant mover across the ETFs we track. Risk led decisively: Semiconductors SMH rose 4.90% and Value Factor VLUE gained 4.45%, while defensive equity exposures lagged, with Utilities XLU down 0.89% and Healthcare XLV off 0.85%.

Equity: South Korea jumped 7.61%

Outperformers: South Korea EWY +7.61% (3M perf: +52.5%), Value Factor VLUE +4.45% (+20.7%)

Underperformers: Utilities XLU -0.89% (3M perf: +3.9%), Healthcare XLV -0.85% (-8.6%)

3M Regime

Strong: South Korea EWY (3M perf: +52.5%), Taiwan EWT (+37.2%), Technology XLK (+24.5%)

Weak: Healthcare XLV (3M perf: -8.6%), India INDA (-6.5%), China MCHI (-5.4%)

Signals to Monitor

Volatility Compression: Global Min Vol ACWV, Copper Miners COPX, Dow Jones DIA

Overbought: Emg. Markets EEM, Taiwan EWT, South Korea EWY

Fixed Income: Preferred Stock climbed 0.63%

Outperformers: Preferred Stock PFF +0.63% (3M perf: +1.8%), Long Treasuries TLT +0.50% (-0.6%)

Underperformers: Muni Bonds MUB +0.01% (3M perf: +0.2%), Global Bonds BNDX +0.12% (-0.2%)

3M Regime

Strong: Preferred Stock PFF (3M perf: +1.8%), Short TIPS VTIP (+1.5%), TIPS TIP (+1.2%)

Weak: Long Treasuries TLT (3M perf: -0.6%), 7-10yr Treasuries IEF (-0.2%), 3-7yr Treasuries IEI (-0.2%)

Signals to Monitor

Volatility Compression: Muni Bonds MUB, Preferred Stock PFF

Specialty: Semiconductors surged 4.90%

Outperformers: Semiconductors SMH +4.90% (3M perf: +41.1%), Gold Miners GDX +3.13% (-2.9%)

Underperformers: Min Volatility USMV -0.27% (3M perf: -1.7%), Biotechnology IBB -0.09% (-2.8%)

3M Regime

Strong: Semiconductors SMH (3M perf: +41.0%), Momentum Factor MTUM (+19.2%), Bitcoin Trust IBIT (+14.5%)

Weak: Gold GLD (3M perf: -4.8%), Gold Miners GDX (-2.9%), Biotechnology IBB (-2.8%)

Signals to Monitor

Volatility Compression: Managed Futures DBMF, Ethereum Trust ETHA, Gold Miners GDX

Overbought: Covered Calls Nasdaq JEPQ, Momentum Factor MTUM, Semiconductors SMH

Romain Gandon
CEO, Quantlake

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results.