How to invest in South Korea using ETFs
How do I invest in South Korean stocks?
The easiest way to invest in the whole South Korean stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the South Korean stock market you'll find 3 indices which are tracked by ETFs.
Alternatively, you can invest in indices on the Asia-Pacific region and Emerging Markets. In the FTSE Developed Asia Pacific ex Japan Index, South Korea is weighted with more than 30%. In the other indices, the weight of South Korea is significantly lower.
Performance of South Korean stocks (MSCI Korea 20/35)
Indices in comparison
The best indices for ETFs on South Korea
For an investment in the South Korean stock market, there are 3 indices available which are tracked by 6 ETFs. On the FTSE Korea 30/18 Capped index there is 1 ETF. On the MSCI Korea index there is 1 ETF. On the MSCI Korea 20/35 index there are 4 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.09% p.a. and 0.74% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
FTSE Korea 30/18 Capped |
South Korea | 1 ETF | 136 (30/10/2020) |
The FTSE Korea 30/18 Capped index tracks the largest stocks from South Korea. The largest company in the index is limited to a maximum of 30 percent of the index capitalization, all other index components to a maximum of 18 percent.
Index factsheet |
MSCI Korea |
South Korea | 1 ETF | 106 (26/02/2021) |
The MSCI Korea index tracks large and mid cap Korean stocks.
Index factsheet |
MSCI Korea 20/35 |
South Korea | 4 ETFs | 107 (30/10/2020) |
The MSCI Korea 20/35 index tracks large and mid cap Korean stocks. The weight of the largest constituent is constrained to 35% and the weights of all other constituents are constrained to a maximum of 20%.
Index factsheet |
ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
---|---|---|---|---|---|---|
iShares MSCI Korea UCITS ETF (Dist)IE00B0M63391 | 685 | 0.74% p.a. | Distributing | Ireland | Full replication | |
Franklin FTSE Korea UCITS ETFIE00BHZRR030 | 640 | 0.09% p.a. | Accumulating | Ireland | Full replication | |
Xtrackers MSCI Korea UCITS ETF 1CLU0292100046 | 126 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
Lyxor MSCI Korea UCITS ETF - AccLU1900066975 | 122 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap | |
iShares MSCI Korea UCITS ETF (Acc)IE00B5W4TY14 | 104 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
HSBC MSCI Korea Capped UCITS ETF USDIE00B3Z0X395 | 39 | 0.60% p.a. | Distributing | Ireland | Full replication |
Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
---|---|---|---|---|---|---|
MSCI Korea 20/35 | -2.87% | 13.23% | 37.40% | 50.85% | 33.02% | |
MSCI Korea | -2.87% | 13.55% | 38.36% | 51.04% | 33.02% | |
FTSE Korea 30/18 Capped | -2.72% | 13.66% | 38.10% | 53.68% | - |
Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
---|---|---|---|---|---|---|
FTSE Korea 30/18 Capped | 2.35% | 32.81% | - | - | - | |
MSCI Korea 20/35 | 2.88% | 30.84% | 14.25% | -17.76% | 28.79% | |
MSCI Korea | 3.22% | 31.07% | 13.98% | -17.95% | 28.91% |
Source: justETF.com; As of 28/02/2021; Calculations in EUR based on the largest ETF of the respective index.
The best South Korea ETFs
by 1 year return
1 | Franklin FTSE Korea UCITS ETF | 53.68% |
2 | HSBC MSCI Korea Capped UCITS ETF USD | 51.75% |
3 | Xtrackers MSCI Korea UCITS ETF 1C | 51.04% |
The cheapest South Korea ETFs
by total expense ratio (TER)
1 | Franklin FTSE Korea UCITS ETF | 0.09% p.a. |
2 | Lyxor MSCI Korea UCITS ETF - Acc | 0.45% p.a. |
3 | HSBC MSCI Korea Capped UCITS ETF USD | 0.60% p.a. |
Asia-Pacific indices with a large share of South Korea
Besides South Korea ETFs, you may consider ETFs on the Asia-Pacific region. In total, you can invest in 6 Asia-Pacific indices, which are tracked by 14 ETFs. The total expense ratio (TER) of ETFs on Asia-Pacific is between 0.12% p.a. and 0.74% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
FTSE Developed Asia Pacific ex Japan | Asia Pacific
South Korea: 30.76% (30/10/2020) |
2 ETFs | 391 (30/10/2020) |
The FTSE Developed Asia Pacific ex Japan index tracks large and mid cap stocks from developed countries in the Asia Pacifc region excluding Japan.
Index factsheet |
MSCI AC Asia Pacific ex Japan | Asia Pacific
South Korea: 11.34% (30/10/2020) |
1 ETF | 1,243 (26/02/2021) |
The MSCI AC Asia Pacific ex Japan index tracks equity markets of the emerging and developed countries of the Asia and Pacific region, excluding Japan.
Index factsheet |
MSCI AC Asia ex Japan | Asia Pacific
South Korea: 13.16% (30/10/2020) |
3 ETFs | 1,171 (26/02/2021) |
The MSCI AC Asia ex Japan index tracks equity markets of the emerging and developed countries of the Asia region, excluding Japan.
Index factsheet |
MSCI AC Far East ex Japan | Asia Pacific
South Korea: 14.46% (30/10/2020) |
2 ETFs | 1,072 (26/02/2021) |
The MSCI AC Far East ex Japan index tracks equity markets of the emerging and developed countries of the East Asian region, excluding Japan.
Index factsheet |
MSCI Emerging Markets Asia | Asia Pacific
South Korea: 14.61% (30/10/2020) |
5 ETFs | 1,114 (26/02/2021) |
The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets.
Index factsheet |
MSCI Emerging Markets Far East | Asia Pacific
South Korea: 16.24% (30/10/2020) |
1 ETF | 1,015 (26/02/2021) |
The MSCI Emerging Markets Far East index tracks the largest companies in China (as accessible through the Hong Kong market), Indonesia, Korea, Malaysia, Philippines, Taiwan and Thailand.
Index factsheet |
ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
---|---|---|---|---|---|---|
iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 2,239 | 0.74% p.a. | Distributing | Ireland | Full replication | |
Amundi MSCI Emerging Markets Asia UCITS ETF EUR (C)LU1681044480 | 1,829 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 1,302 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 1,257 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - AccLU1900068328 | 855 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF DistributingIE00B9F5YL18 | 744 | 0.15% p.a. | Distributing | Ireland | Full replication | |
Xtrackers MSCI EM Asia Swap UCITS ETF 1CLU0292107991 | 627 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
Xtrackers MSCI AC Asia ex Japan Swap UCITS ETF 1CLU0322252171 | 583 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 575 | 0.45% p.a. | Accumulating | Ireland | Optimized sampling | |
Lyxor MSCI AC Asia Ex Japan UCITS ETF - AccLU1900068161 | 500 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 188 | 0.23% p.a. | Accumulating | Ireland | Swap-based | |
Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 | 180 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap | |
Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF AccIE00BK5BQZ41 | 80 | 0.15% p.a. | Accumulating | Ireland | Full replication | |
HSBC MSCI EM Far East UCITS ETF USDIE00B5LP3W10 | 30 | 0.60% p.a. | Distributing | Ireland | Optimized sampling |
Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
---|---|---|---|---|---|---|
FTSE Developed Asia Pacific ex Japan | 0.32% | 8.12% | 22.57% | 23.17% | 23.73% | |
MSCI AC Asia Pacific ex Japan | -0.15% | 7.62% | 17.81% | 25.13% | 27.03% | |
MSCI AC Asia ex Japan | -0.45% | 8.11% | 18.73% | 27.47% | 28.71% | |
MSCI AC Far East ex Japan | -0.92% | 7.81% | 18.82% | 28.93% | 29.66% | |
MSCI Emerging Markets Asia | -0.72% | 8.44% | 19.02% | 31.31% | 32.12% | |
MSCI Emerging Markets Far East | -1.34% | 8.22% | 20.26% | 34.26% | 34.49% |
Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
---|---|---|---|---|---|---|
FTSE Developed Asia Pacific ex Japan | 3.68% | 8.65% | 19.20% | -10.31% | 16.18% | |
MSCI AC Asia Pacific ex Japan | 5.92% | 11.51% | 20.31% | -10.40% | 19.27% | |
MSCI Emerging Markets Asia | 6.74% | 17.29% | 20.85% | -11.64% | 24.79% | |
MSCI Emerging Markets Far East | 6.95% | 19.38% | 21.66% | -12.53% | 25.59% | |
MSCI AC Asia ex Japan | 7.06% | 13.42% | 20.32% | -11.47% | 24.22% | |
MSCI AC Far East ex Japan | 7.27% | 14.54% | 20.95% | -11.69% | 24.08% |
Source: justETF.com; As of 28/02/2021; Calculations in EUR based on the largest ETF of the respective index.
Emerging markets indices with a large share of South Korea
Besides South Korea ETFs you may consider emerging markets ETFs. In total, you can invest in 1 emerging markets index, which is tracked by 13 ETFs. The total expense ratio (TER) of ETFs on emerging markets is between 0.14% p.a. and 0.65% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
MSCI Emerging Markets | Emerging Markets
South Korea: 11.90% (30/10/2020) |
13 ETFs | 1,381 (26/02/2021) |
The MSCI Emerging Markets index tracks stocks from emerging markets worldwide.
Index factsheet |
ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
---|---|---|---|---|---|---|
Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 | 3,728 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,469 | 0.18% p.a. | Distributing | Ireland | Optimized sampling | |
Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 | 2,866 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,989 | 0.23% p.a. | Distributing | Luxembourg | Optimized sampling | |
Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 1,108 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
Lyxor MSCI Emerging Markets UCITS ETF - Acc EURFR0010429068 | 1,092 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 957 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 832 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
Lyxor MSCI Emerging Markets (LUX) UCITS ETFLU0635178014 | 645 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 509 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 447 | 0.42% p.a. | Accumulating | Ireland | Optimized sampling | |
Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 | 402 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
Deka MSCI Emerging Markets UCITS ETFDE000ETFL342 | 57 | 0.65% p.a. | Accumulating | Germany | Unfunded swap |
Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
---|---|---|---|---|---|---|
MSCI Emerging Markets | -1.06% | 7.29% | 17.94% | 22.91% | 20.35% |
Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
---|---|---|---|---|---|---|
MSCI Emerging Markets | 5.10% | 8.01% | 20.90% | -11.48% | - |
Source: justETF.com; As of 28/02/2021; Calculations in EUR based on the largest ETF of the respective index.