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.
Performance of South Korean stocks (MSCI Korea 20/35)
1 month: -2.63%
1 year: 14.95%
3 years: 3.96%
5 years: 4.28%
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 20/35 index there are 4 ETFs. On the MSCI Korea 20/35 Custom index there is 1 ETF. 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 | 161 (31.03.22) | 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 20/35 | South Korea | 4 ETFs | 111 (30.11.22) | 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 |
MSCI Korea 20/35 Custom | South Korea | 1 ETF | 111 (30.11.22) | The MSCI Korea 20/35 Custom 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%. A buffer of 10% is applied on these limits at each index rebalancing. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Franklin FTSE Korea UCITS ETFIE00BHZRR030 | 393 | 0.09% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI Korea UCITS ETF (Acc)IE00B5W4TY14 | 340 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI Korea UCITS ETF (Dist)IE00B0M63391 | 308 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| HSBC MSCI Korea Capped UCITS ETF USDIE00B3Z0X395 | 297 | 0.50% p.a. | Distributing | Ireland | Full replication | |
| Lyxor MSCI Korea UCITS ETF - AccLU1900066975 | 104 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Korea UCITS ETF 1CLU0292100046 | 53 | 0.65% p.a. | Accumulating | Luxembourg | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Korea 20/35 Custom | -3.31% | -3.21% | 1.30% | 14.76% | 4.71% | |
| MSCI Korea 20/35 | -3.08% | -2.94% | 1.52% | 15.17% | 4.36% | |
| FTSE Korea 30/18 Capped | -2.43% | -2.03% | 2.45% | 15.88% | 8.01% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI Korea 20/35 | 5.64% | -23.99% | -0.73% | 32.05% | 13.40% | |
| MSCI Korea 20/35 Custom | 6.86% | -24.50% | -0.85% | 31.07% | 13.98% | |
| FTSE Korea 30/18 Capped | 7.52% | -24.31% | 1.04% | 32.81% | - |
Source: justETF.com; As of 30.09.23; 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 | 15.88% |
| 2 | Lyxor MSCI Korea UCITS ETF - Acc | 15.67% |
| 3 | HSBC MSCI Korea Capped UCITS ETF USD | 15.20% |
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 | 0.50% p.a. |
Alternative investment opportunities
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 5 Asia-Pacific indices, which are tracked by 13 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: 28.19% (30/11/2022) | 2 ETFs | 399 (31.08.23) | The FTSE Developed Asia Pacific ex Japan index tracks large and mid cap stocks from developed countries in the Asia Pacific region excluding Japan. Index factsheet |
| MSCI AC Asia Pacific ex Japan | Asia Pacific South Korea: 11.25% (30/11/2022) | 1 ETF | 1,292 (31.08.23) | 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: 13.61% (30/11/2022) | 2 ETFs | 1,227 (31.08.23) | 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: 16.39% (30/11/2022) | 3 ETFs | 1,112 (31.08.23) | 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: 15.31% (30/11/2022) | 5 ETFs | 1,173 (31.08.23) | The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 2,030 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 935 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets Asia UCITS ETF EUR (C)LU1681044480 | 890 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 877 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF DistributingIE00B9F5YL18 | 872 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 | 626 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - AccLU1900068328 | 362 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF AccIE00BK5BQZ41 | 285 | 0.15% p.a. | Accumulating | Ireland | Full replication | |
| Lyxor MSCI AC Asia Ex Japan UCITS ETF - AccLU1900068161 | 277 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 258 | 0.45% p.a. | Accumulating | Ireland | Optimized sampling | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 182 | 0.23% p.a. | Accumulating | Ireland | Swap-based | |
| Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 | 145 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI AC Far East ex-Japan UCITS ETF USD (Acc)IE00BKPX3K41 | 13 | 0.74% p.a. | Accumulating | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI AC Far East ex Japan | -2.28% | -1.73% | -5.42% | 0.77% | -8.68% | |
| MSCI AC Asia Pacific ex Japan | -0.72% | -0.77% | -1.60% | 1.83% | 3.69% | |
| MSCI AC Asia ex Japan | -1.00% | -0.63% | -1.75% | 1.92% | -0.44% | |
| MSCI Emerging Markets Asia | -1.64% | -0.07% | -0.85% | 2.02% | -0.32% | |
| FTSE Developed Asia Pacific ex Japan | -0.69% | -1.44% | -0.70% | 4.34% | 20.63% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI AC Far East ex Japan | -2.15% | -15.89% | -2.74% | 14.53% | 20.95% | |
| FTSE Developed Asia Pacific ex Japan | -0.69% | -7.26% | 9.46% | 8.65% | 19.20% | |
| MSCI AC Asia Pacific ex Japan | -0.45% | -12.62% | 3.78% | 11.51% | 20.31% | |
| MSCI AC Asia ex Japan | -0.13% | -14.78% | 1.91% | 13.80% | 19.40% | |
| MSCI Emerging Markets Asia | 0.94% | -15.09% | 1.48% | 16.80% | 20.74% |
Source: justETF.com; As of 30.09.23; 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 18 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: 11.95% (30/11/2022) | 18 ETFs | 1,421 (31.08.23) | 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 | 4,320 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,566 | 0.18% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 | 2,547 | 0.20% p.a. | Accumulating | Luxembourg | Full replication | |
| Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 | 2,211 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 1,993 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 1,956 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 | 1,468 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,316 | 0.23% p.a. | Distributing | Luxembourg | Optimized sampling | |
| Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 | 911 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI Emerging Markets UCITS ETF - Acc EURFR0010429068 | 733 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 645 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 | 479 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 361 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 324 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI Emerging Markets UCITS ETF 1DIE000GWA2J58 | 160 | 0.18% p.a. | Distributing | Ireland | Full replication | |
| HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 | 107 | 0.15% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI Emerging Markets UCITS ETF - Acc USDFR0010435297 | 105 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| Deka MSCI Emerging Markets UCITS ETFDE000ETFL342 | 75 | 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 | -1.63% | 0.28% | 1.03% | 2.18% | 5.34% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | 2.13% | -15.28% | 5.39% | 8.01% | 20.90% |
Source: justETF.com; As of 30.09.23; Calculations in EUR based on the largest ETF of the respective index.