Still-bright outlook for investors in South Korea

Article Excerpt

This East Asian country managed the COVID-19 pandemic well, with the government implementing massive stimulus programs to boost the economy. All this has set South Korea up for a strong post-pandemic rebound. Meanwhile, many stocks now trade at attractive valuations. (For more on that, see box next page.) Here is an ETF that provides exposure to the top South Korean publicly listed companies. ISHARES MSCI SOUTH KOREA ETF $61.58 (New York symbol EWY; TSI Network ETF Rating: Aggressive; Market cap: $2.9 billion) tracks the performance of the largest publicly listed South Korean companies. Technology companies account for 42% of the fund’s assets, while Consumer Cyclical (11%), Financial Services (11%), Industrials (10%), and Basic Materials (8%) are other key segments. The ETF holds a portfolio of 104 stocks; the top 10 make up 49% of its assets. They are Samsung Electronics (technology, 21.6%), SK Hynix (technology, 5.8%), Samsung SDI (electronics, 3.4%), Naver Corp. (technology, 3.3%), Hyundai Motor Corp. (consumer cyclical, 3.1%) LG Chem (Basic Materials, 2.9%), Kia…