Consider Exposure to Korean Growth

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

This week’s column gives an overview of the iShares MSCI South Korea Capped ETF (EWY), a single-county exchange-traded fund (ETF) that provides exposure to a selection of large- and mid-cap South Korean companies.


As with most investments that are oriented towards South Korea, this fund has a very large position in Samsung, which is headquartered near the country’s capital city of Seoul. Indeed, more than 20% of EWY’s assets are allocated to Samsung, which plays a significant role in South Korea’s economy.

For that reason, any potential investors in this fund should be comfortable with investing in Samsung, which made the unprecedented decision in October to recall all of its Galaxy Note 7 smartphones after some of them spontaneously burst into flames during use.

Investors who are undeterred by the fallout from that news and interested in gaining exposure to Samsung shares as they recover can avoid paying international security fees by investing directly in EWY. Plus, EWY does offer a fair degree of diversity, as the index this fund tracks contains 107 stocks.


In terms of EWY’s sector weightings, the largest group is technology at 38%, followed by financial services, consumer cyclicals and industrials.

In the course of the past 52 weeks, EWY has risen 17.5%. This rise beats U.S. domestic markets and shows the potential of emerging markets to post big gains. EWY’s double-digit percentage return also means that EWY outperformed many other emerging market funds this year. In total, EWY has more than $3 billion in assets, and its expense ratio of 0.62% is normal for a single-country fund. Its dividend yield of about 2% is paid out annually.


View the current price, volume, performance and top 10 holdings of EWY at


The fund’s top five holdings are Samsung Electronics Ltd., 23.09%; SK Hynix Inc., 4.01%; Naver Corp., 3.19%; Hyundai Motor, 3.12%; and Shinhan Financial Group Ltd., 2.92%. The top 10 holdings comprise 47.88% of assets.

During the past 30 years, South Korea has surged massively to become a global leader in technology. If you believe this growth may continue, you may wish to consider what the iShares South Korea Capped ETF (EWY) can offer.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk

share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops