South Korea ETFs

Financial companies have started to provide Exchange-Traded Funds (ETFs) entirely focusing on South Korean stocks. Like many ETFs, these are passive investments focusing on tracking indexes and indices of South Korea's companies and sometimes bonds. Some funds are also currency-hedged, meaning that the funds compensate for currency fluctuations between the South Korean Won and the target currency of the fund, such as US dollars or British pounds.

All the ETFs listed below trade on the NYSE Arca, an exchange affiliated with the NYSE (New York Stock Exchange), the largest stock exchange in the world by market capitalization. The NYSE also lists popular South Korean companies on its exchange, such as KB Financial Group, LG Display, and POSCO (see complete list).

Standard ETFs

BlackRock iShares MSCI South Korea ETF (NYSEARCA:EWY)

iShares MSCI South Korea ETF, a BlackRock product, is an ETF tracking the MSCI Korea 25/50 index measuring the "large and mid cap segments of the Korean market." As of March 31, 2020, the ETF's top holdings include Samsung Electronics (21.59%), SK Hynix (7.04%), Naver (3.70%), and Celltrion (3.34%). The technology sector is the most represented sector among the holdings of this ETF (34.34%). The expense ratio of iShares MSCI South Korea ETF is 0.59%. Read more about iShares MSCI South Korea ETF on iShares.com.

Franklin FTSE South Korea ETF (NYSEARCA:FLKR)

Franklin FTSE South Korea ETF is a similar product to BlackRock's iShares MSCI South Korea ETF but has the FTSE South Korea Capped Index as a benchmark. As of June 01, 2020, the ETF's top holdings include Samsung Electronics (15.29%), SK Hynix (6.99%), Naver (5.12%), and Celltrion (3.80%). The ETF is also tilted toward information technology (30.4%). The expense ratio is lower than iShares MSCI South Korea ETF at 0.09%. Read more about Franklin FTSE South Korea ETF on Franklin Templeton's website.

Currency Hedged ETFs

BlackRock iShares Currency Hedged MSCI South Korea ETF (NYSEARCA:HEWY)

iShares Currency Hedged MSCI South Korea ETF is the counterpart of iShares MSCI South Korea ETF from the same issuer. The ETF's holdings comprise mostly of the non-hedged ETF (EWY) alongside KRW/USD FX and forwards. This combination limits exposure to fluctations in the KRW/USD exchange rate. This ETF has a high expense ratio of 1.36%, but is under a 0.77% fee waiver until December 31, 2020, effectively bringing the current expense ration to a net 0.59%. Read more about iShares Currency Hedged MSCI South Korea ETF on iShares.com.

Leveraged ETFs

Direxion Daily MSCI South Korea Bull 3X Shares (NYSEARCA:KORU)

The Direxion Daily MSCI South Korea Bull 3X Shares is a daily leveraged ETF seeking to amplify the performance of the MSCI Korea 25/50 index. According to the fund's prospectus, "the fund seeks daily investment results, before fees and expenses, of 300% of the daily performance of the index." The current expense ration of the fund is 1.29%. Warning: Leveraged ETFs are not designed to be long-term investments and need to be continuously monitored to meet investment goals. Prospectus for Direxion Daily MSCI South Korea Bull 3X Shares.

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