u/EuroPoor-NoodleLover ·
Reddit — r/wallstreetbets
· August 05, 2026 at 15:47
· ⬆ 30 pts
· 💬 14 comments
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After the last few days of extreme volatility on Korean market, and unrelated research of UCITS ETF-s I've done - I'm left confused.
Since the UCITS ETF-s are capped 30/18 meaning 30% maximum concentration in the top performing stock and 18% maximum concentration in all other stocks inside the fund. Currently the market share of Samsung is about 26% and SK Hynix 21% of the Korean index.
Does that mean then when let's say as example FLXK Franklin UCITS ETF rebalance mid-september they will be forced to sell 3% of SK Hynix no matter what? And that's just one fund of one provider. When you apply that to all ETFs tracking Korea that's a huge selling pressure, just because regulations.