iShares MSCI South Korea ETF (EWY) to Switch Index With Daily Concentration Limits

BlackRock's iShares has announced that the iShares MSCI South Korea ETF (EWY) will switch its underlying benchmark from the MSCI Korea 25/50 Index to the MSCI Korea 25/50 Daily 25 Capped Index, effective around November 9, 2026. The new index will continue tracking large- and mid-cap South Korean equities but introduce daily concentration controls. Individual corporate groups will be capped at 25% of index weight, while groups exceeding 5% collectively cannot represent more than 50%. If any group exceeds 25% between quarterly rebalances, its weight will be reduced to 22.5%. The index will remain free-float market-cap weighted and rebalance quarterly using an optimization process designed to minimize deviations from the broader MSCI Korea Index. The change aims to maintain broad Korean equity exposure while controlling concentration in dominant corporate groups.