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: -3,54%
1 year: 6,50%
3 years: -16,78%
5 years: 12,51%
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 5 ETFs. On the FTSE Korea 30/18 Capped index there is 1 ETF. On the MSCI Korea 20/35 index there are 3 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 | Zuid-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 | Zuid-Korea | 3 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 | Zuid-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 EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Franklin FTSE Korea UCITS ETFIE00BHZRR030 | 884 | 0,09% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| iShares MSCI Korea UCITS ETF (Dist)IE00B0M63391 | 255 | 0,74% p.a. | Distribueren | Ierland | Volledige replicatie | |
| iShares MSCI Korea UCITS ETF (Acc)IE00B5W4TY14 | 139 | 0,65% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| HSBC MSCI Korea Capped UCITS ETF USDIE00B3Z0X395 | 51 | 0,50% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Xtrackers MSCI Korea UCITS ETF 1CLU0292100046 | 48 | 0,45% p.a. | Accumulerend | Luxemburg | Volledige replicatie |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Korea 20/35 | -3,39% | -9,16% | -9,08% | 3,64% | -16,16% | |
| MSCI Korea 20/35 Custom | -3,34% | -9,09% | -8,82% | 3,87% | -15,65% | |
| FTSE Korea 30/18 Capped | -3,27% | -8,74% | -8,52% | 4,88% | -13,80% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Korea 20/35 Custom | -5,82% | 17,84% | -24,50% | -0,85% | 31,07% | |
| MSCI Korea 20/35 | -5,25% | 15,59% | -24,03% | -0,94% | 30,84% | |
| FTSE Korea 30/18 Capped | -5,15% | 18,89% | -24,31% | 1,04% | 32,81% |
Source: justETF.com; As of 30-09-2024; 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 | 4,88% |
| 2 | iShares MSCI Korea UCITS ETF (Acc) | 3,89% |
| 3 | Xtrackers MSCI Korea UCITS ETF 1C | 3,87% |
The cheapest South Korea ETFs
by total expense ratio (TER)
| 1 | Franklin FTSE Korea UCITS ETF | 0,09% p.a. |
| 2 | Xtrackers MSCI Korea UCITS ETF 1C | 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 | Azië-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 | Azië-Pacific South Korea: 11.25% (30/11/2022) | 1 ETF | 1.132 (30-09-2024) | 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 | Azië-Pacific South Korea: 13.61% (30/11/2022) | 1 ETF | 1.070 (30-09-2024) | 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 | Azië-Pacific South Korea: 16.39% (30/11/2022) | 3 ETFs | 919 (30-09-2024) | 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 | Azië-Pacific South Korea: 15.31% (30/11/2022) | 5 ETFs | 1.027 (30-09-2024) | 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 | 2.957 | 0,20% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF DistributingIE00B9F5YL18 | 1.088 | 0,15% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Amundi MSCI Emerging Markets Asia UCITS ETF EUR (C)LU1681044480 | 865 | 0,20% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 862 | 0,55% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 730 | 0,74% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 | 617 | 0,20% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| Vanguard FTSE Developed Asia Pacific ex Japan UCITS ETF (USD) AccumulatingIE00BK5BQZ41 | 465 | 0,15% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Amundi MSCI AC Asia Pacific Ex Japan UCITS ETF AccLU1900068328 | 385 | 0,60% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 304 | 0,23% p.a. | Accumulerend | Ierland | Swap-gebaseerd | |
| Amundi MSCI Emerging Asia II UCITS ETF AccLU1781541849 | 207 | 0,12% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 123 | 0,45% p.a. | Accumulerend | Ierland | Geoptimaliseerde sampling | |
| iShares MSCI AC Far East ex-Japan UCITS ETF USD (Acc)IE00BKPX3K41 | 34 | 0,74% p.a. | Accumulerend | Ierland | Volledige replicatie |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| FTSE Developed Asia Pacific ex Japan | 3,09% | 2,96% | 4,93% | 14,78% | 8,32% | |
| MSCI AC Far East ex Japan | 9,16% | 6,27% | 14,36% | 19,08% | -2,76% | |
| MSCI AC Asia ex Japan | 7,37% | 5,54% | 14,09% | 21,89% | 4,80% | |
| MSCI AC Asia Pacific ex Japan | 6,96% | 6,06% | 13,57% | 21,97% | 7,43% | |
| MSCI Emerging Markets Asia | 6,93% | 4,65% | 14,22% | 23,30% | 5,66% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| FTSE Developed Asia Pacific ex Japan | 6,42% | 7,20% | -7,26% | 9,46% | 8,65% | |
| MSCI AC Far East ex Japan | 18,03% | -1,28% | -15,89% | -2,74% | 14,53% | |
| MSCI AC Asia Pacific ex Japan | 18,24% | 2,96% | -12,62% | 3,78% | 11,51% | |
| MSCI AC Asia ex Japan | 19,50% | 2,12% | -14,88% | 2,94% | 13,90% | |
| MSCI Emerging Markets Asia | 19,86% | 3,84% | -15,09% | 1,48% | 16,80% |
Source: justETF.com; As of 30-09-2024; 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 16 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 | Opkomende markten South Korea: 11.95% (30/11/2022) | 16 ETFs | 1.277 (30-09-2024) | 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 | 5.542 | 0,18% p.a. | Accumulerend | Ierland | Geoptimaliseerde sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 4.557 | 0,18% p.a. | Distribueren | Ierland | Volledige replicatie | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 3.332 | 0,18% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 | 3.105 | 0,18% p.a. | Accumulerend | Luxemburg | Volledige replicatie | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 2.447 | 0,15% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 | 2.401 | 0,20% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 | 2.273 | 0,14% p.a. | Distribueren | Luxemburg | Niet-gefinancierde swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1.447 | 0,18% p.a. | Distribueren | Luxemburg | Geoptimaliseerde sampling | |
| Amundi MSCI Emerging Markets III UCITS ETF EUR AccFR0010429068 | 899 | 0,55% p.a. | Accumulerend | Frankrijk | Niet-gefinancierde swap | |
| Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 | 888 | 0,20% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 628 | 0,18% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 602 | 0,49% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (D)LU1737652583 | 526 | 0,18% p.a. | Distribueren | Luxemburg | Volledige replicatie | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 422 | 0,19% p.a. | Accumulerend | Ierland | Niet-gefinancierde swap | |
| HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 | 277 | 0,15% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Amundi MSCI Emerging Markets III UCITS ETF USD AccFR0010435297 | 111 | 0,55% p.a. | Accumulerend | Frankrijk | Niet-gefinancierde swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | 5,60% | 3,92% | 9,97% | 19,21% | 4,15% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | 15,31% | 5,75% | -15,28% | 5,39% | 8,01% |
Source: justETF.com; As of 30-09-2024; Calculations in EUR based on the largest ETF of the respective index.