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 (31/12/2020) |
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 | 713 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Franklin FTSE Korea UCITS ETFIE00BHZRR030 | 646 | 0.09% p.a. | Accumulating | Ireland | Full replication | |
| Lyxor MSCI Korea UCITS ETF - AccLU1900066975 | 133 | 0.45% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Korea UCITS ETF 1CLU0292100046 | 130 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI Korea UCITS ETF (Acc)IE00B5W4TY14 | 106 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| HSBC MSCI Korea Capped UCITS ETF USDIE00B3Z0X395 | 35 | 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 | 13.10% | 29.33% | 41.02% | 30.84% | 22.94% | |
| MSCI Korea | 13.18% | 30.97% | 41.45% | 31.07% | 22.57% | |
| FTSE Korea 30/18 Capped | 13.18% | 31.40% | 42.19% | 32.81% | - |
| Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
|---|---|---|---|---|---|---|
| MSCI Korea | 30.37% | 31.07% | 13.98% | -17.95% | 28.91% | |
| MSCI Korea 20/35 | 30.84% | 30.84% | 14.25% | -17.76% | 28.79% | |
| FTSE Korea 30/18 Capped | 33.17% | 32.81% | - | - | - |
Source: justETF.com; As of 31/12/2020; 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 | 32.81% |
| 2 | HSBC MSCI Korea Capped UCITS ETF USD | 32.55% |
| 3 | iShares MSCI Korea UCITS ETF (Acc) | 31.38% |
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 | 1,258 (31/12/2020) |
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 | 1,186 (31/12/2020) |
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 | 1,087 (31/12/2020) |
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 | 1,129 (31/12/2020) |
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 | 1,030 (31/12/2020) |
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 | 2,273 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Emerging Markets Asia UCITS ETF EUR (C)LU1681044480 | 1,810 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 1,299 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 1,196 | 0.65% p.a. | Accumulating | Ireland | Full replication | |
| Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - AccLU1900068328 | 823 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF DistributingIE00B9F5YL18 | 750 | 0.15% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers MSCI AC Asia ex Japan Swap UCITS ETF 1CLU0322252171 | 637 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI EM Asia Swap UCITS ETF 1CLU0292107991 | 634 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 545 | 0.45% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI AC Asia Ex Japan UCITS ETF - AccLU1900068161 | 537 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 167 | 0.23% p.a. | Accumulating | Ireland | Swap-based | |
| Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 | 164 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF AccIE00BK5BQZ41 | 55 | 0.15% p.a. | Accumulating | Ireland | Full replication | |
| HSBC MSCI EM Far East UCITS ETF USDIE00B5LP3W10 | 25 | 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 | 6.38% | 20.37% | 21.46% | 8.65% | 16.17% | |
| MSCI AC Asia Pacific ex Japan | 4.20% | 13.99% | 19.27% | 11.51% | 20.21% | |
| MSCI AC Asia ex Japan | 4.20% | 12.91% | 19.24% | 13.42% | 20.82% | |
| MSCI AC Far East ex Japan | 3.84% | 12.75% | 18.64% | 14.54% | 22.34% | |
| MSCI Emerging Markets Asia | 4.64% | 13.78% | 21.86% | 17.29% | 25.24% | |
| MSCI Emerging Markets Far East | 4.27% | 13.82% | 21.35% | 19.38% | 27.03% |
| Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
|---|---|---|---|---|---|---|
| FTSE Developed Asia Pacific ex Japan | 7.58% | 8.65% | 19.20% | -10.31% | 16.18% | |
| MSCI AC Asia Pacific ex Japan | 10.43% | 11.51% | 20.31% | -10.40% | 19.27% | |
| MSCI AC Asia ex Japan | 12.59% | 13.42% | 20.32% | -11.47% | 24.22% | |
| MSCI AC Far East ex Japan | 13.73% | 14.54% | 20.95% | -11.69% | 24.08% | |
| MSCI Emerging Markets Asia | 16.39% | 17.29% | 20.85% | -11.64% | 24.79% | |
| MSCI Emerging Markets Far East | 19.38% | 19.38% | 21.66% | -12.53% | 25.59% |
Source: justETF.com; As of 31/12/2020; 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 | 1,397 (31/12/2020) |
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 | 3,594 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,293 | 0.18% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 | 2,789 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,975 | 0.23% p.a. | Distributing | Luxembourg | Optimized sampling | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 1,109 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI Emerging Markets UCITS ETF - Acc EURFR0010429068 | 1,096 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 852 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 794 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| Lyxor MSCI Emerging Markets (LUX) UCITS ETFLU0635178014 | 625 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 601 | 0.29% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 442 | 0.42% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 | 411 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Deka MSCI Emerging Markets UCITS ETFDE000ETFL342 | 54 | 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 | 4.78% | 14.15% | 19.56% | 8.01% | 15.59% |
| Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | 6.82% | 8.01% | 20.90% | -11.48% | - |
Source: justETF.com; As of 31/12/2020; Calculations in EUR based on the largest ETF of the respective index.