South Korea: More than an Olympic Host

Article Excerpt

South Korea has been one of the most impressive performers among emerging market economies over the past 50 years. Rising wages and an aging workforce could slow growth, but the country’s overall outlook is positive. Unification with North Korea could significantly accelerate growth, although that kind of reconciliation is unlikely in the near-to-medium term. Here is one ETF that provides exposure to the top South Korean stocks. ISHARES MSCI SOUTH KOREA ETF $60.76 (New York symbol EWY; TSINetwork ETF Rating: Aggressive; Market cap: $3.4 billion) tracks the performance of the largest publicly listed South Korean companies. Technology companies account for 41% of its assets, followed by Financial Services (14%), Consumer Cyclical (10%), Industrials (9%) and Basic Materials (8%). The ETF holds a portfolio of 115 stocks; the top 10 make up 47% of its assets. They include Samsung Electronics (technology; 22.8%), SK Hynix (technology; 5.5%), Celltrion (healthcare; 2.6%), KB Financial (financial services; 2.6%), and POSCO (basic materials; 2.6%). Samsung Electronics’ high weighting in the ETF creates significant…