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: 9.58%
1 year: 7.74%
3 years: -12.34%
5 years: 16.20%
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 (31/03/2022) | 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 (30/11/2022) | 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 (30/11/2022) | 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 GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Korea UCITS ETF (Acc)IE00B5W4TY14 | 416 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| Franklin FTSE Korea UCITS ETFIE00BHZRR030 | 326 | 0.09% p.a. | Accumulating | Ireland | Full replication | |
| iShares MSCI Korea UCITS ETF (Dist)IE00B0M63391 | 256 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| HSBC MSCI Korea Capped UCITS ETF USDIE00B3Z0X395 | 256 | 0.50% p.a. | Distributing | Ireland | Full replication | |
| Lyxor MSCI Korea UCITS ETF - AccLU1900066975 | 89 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Korea UCITS ETF 1CLU0292100046 | 37 | 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 | -6.75% | -14.11% | -6.61% | 1.84% | -7.22% | |
| MSCI Korea 20/35 Custom | -6.26% | -14.00% | -6.49% | 1.92% | -6.54% | |
| FTSE Korea 30/18 Capped | -6.34% | -13.02% | -5.49% | 3.09% | -3.68% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI Korea 20/35 | -3.87% | -19.77% | -7.22% | 39.54% | 7.86% | |
| MSCI Korea 20/35 Custom | -2.38% | -20.17% | -7.48% | 38.49% | 7.43% | |
| FTSE Korea 30/18 Capped | -1.83% | -20.08% | -5.59% | 40.37% | - |
Source: justETF.com; As of 31/10/2023; Calculations in GBP based on the largest ETF of the respective index.
The best South Korea ETFs
by 1 year return
| 1 | Franklin FTSE Korea UCITS ETF | 3.09% |
| 2 | HSBC MSCI Korea Capped UCITS ETF USD | 2.05% |
| 3 | Lyxor MSCI Korea UCITS ETF - Acc | 1.96% |
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 12 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 (31/08/2023) | 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 | 1,309 (31/10/2023) | 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 | 1,245 (31/10/2023) | 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 | 1,123 (31/10/2023) | 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) | 4 ETFs | 1,190 (31/10/2023) | The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets. Index factsheet |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 1,730 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 761 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF DistributingIE00B9F5YL18 | 757 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 704 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 | 516 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - AccLU1900068328 | 291 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF (USD) AccumulatingIE00BK5BQZ41 | 230 | 0.15% p.a. | Accumulating | Ireland | Full replication | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 193 | 0.45% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI AC Asia Ex Japan UCITS ETF - AccLU1900068161 | 186 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 163 | 0.23% p.a. | Accumulating | Ireland | Swap-based | |
| Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 | 118 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USD (Dist)IE00022VXYM7 | 3 | 0.45% 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 | -4.65% | -9.27% | -7.27% | 0.19% | 11.14% | |
| MSCI AC Asia Pacific ex Japan | -2.99% | -7.07% | -3.68% | 5.26% | -6.89% | |
| MSCI AC Asia ex Japan | -2.74% | -7.09% | -3.16% | 7.22% | -11.16% | |
| MSCI Emerging Markets Asia | -2.73% | -7.21% | -2.84% | 8.04% | -11.02% | |
| MSCI AC Far East ex Japan | -3.26% | -9.49% | -6.82% | 8.83% | -18.67% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI AC Far East ex Japan | -7.62% | -11.22% | -9.10% | 21.03% | 15.02% | |
| FTSE Developed Asia Pacific ex Japan | -7.59% | -2.11% | 2.30% | 14.84% | 13.37% | |
| MSCI AC Asia Pacific ex Japan | -5.61% | -7.77% | -3.00% | 17.82% | 14.45% | |
| MSCI AC Asia ex Japan | -5.16% | -10.05% | -4.75% | 20.25% | 13.57% | |
| MSCI Emerging Markets Asia | -4.18% | -10.37% | -5.16% | 23.42% | 14.83% |
Source: justETF.com; As of 31/10/2023; Calculations in GBP 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 0.55% 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 | 1,437 (31/10/2023) | The MSCI Emerging Markets index tracks stocks from emerging markets worldwide. Index factsheet |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 | 3,735 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,085 | 0.18% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 | 2,224 | 0.20% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 1,938 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 1,506 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 | 1,265 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,126 | 0.23% p.a. | Distributing | Luxembourg | Optimized sampling | |
| Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 | 790 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI Emerging Markets II UCITS ETF AccLU2573967036 | 662 | 0.14% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 530 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 | 395 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 307 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 297 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI Emerging Markets UCITS ETF 1DIE000GWA2J58 | 139 | 0.18% p.a. | Distributing | Ireland | Full replication | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR - USD (D)LU2277591868 | 123 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 | 98 | 0.15% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets III UCITS ETF USD AccFR0010435297 | 86 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1DLU2675291913 | 0 | 0.18% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | -3.14% | -7.24% | -2.45% | 4.61% | -5.23% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | -3.41% | -10.57% | -1.50% | 14.15% | 13.94% |
Source: justETF.com; As of 31/10/2023; Calculations in GBP based on the largest ETF of the respective index.