Samsung, POSCO, Korea Electric Power and SK Telecom – these 4 companies make up 50% of the market capitalization of the South Korean stock market. These same companies make up 40% of the iShares MSCI South Korea Index (EWY) exchange traded fund. Although the ETF is not diversified, these companies are doing pretty well globally, and the ETF is up 25% this year. The South Korean economy may suffer as China becomes more of a competitor, but these companies may still hold up in the global arena. This just shows, it’s important to understand what you are getting when buying into a fund.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.