ISHARES MSCI SOUTH KOREA INDEX FUND $55.63 - New York Exchange symbol EWY

ISHARES MSCI SOUTH KOREA INDEX FUND $55.63 (New York Exchange symbol EWY; buy or sell through brokers), is an exchange-traded fund that aims to track the MSCI Korea Index. The index aims to capture 85% of the total market capitalization of the South Korean stock market. The other 15% is unavailable for investment, partly due to limitations on foreign ownership. The fund’s top holdings are Samsung Electronics, 15.2%; Posco (steel), 5.6%; Hyundai Motor Co., 4.8%; Hyundai Mobis (auto parts), 3.5%; Shinhan Financial, 3.2%; KB Financial Group, 3.0%; LG Chemical, 3.0%; Hyundai Heavy Industries, 2.6%; Samsung Electronics preferred shares, 2.2%; and Hynix Semiconductor, 2.1%. The fund’s industry breakdown is as follows: Information Technology, 26.3%; Industrials, 16.5%; Financials, 15.6%; Consumer Discretionary, 15.3%; Materials, 14.0%; Consumer Staples, 4.7%; Telecommunication Services, 2.8%; Energy, 2.8%; Utilities, 1.6%; and Health Care, 0.5%. iShares MSCI South Korea Index Fund was launched on May 9, 2000. The ETF has an expense ratio of 0.65%. Cuts to interest rates and taxes have boosted the South Korean economy, which is the fourth largest in Asia. Aided by a low currency (the won), exports jumped 24.6% in November 2010 from a year earlier. Exports to China are particularly strong. That helps offset the risk of lower sales to the U.S. and Europe if their economies continue to struggle. China is now South Korea’s biggest export market. An ongoing drawback to South Korean investment is the country’s proximity to North Korea, with its nuclear weapons and seemingly unstable and aging leader. Even though North Korea recently shelled a South Korean island, it is unlikely to launch any serious attack on the south. iShares MSCI South Korea Index Fund is a buy for aggressive investors.