South Korea’s exchange traded fund (ETF) iShares MSCI South Korea Index (EWY) has been a top performing ETF this year. Currently, it’s up 43% year-to-date. Since EWY has been doing so well, many investors wonder if it’s still inexpensive enough to justify buying it. Carl Delfeld for ETF XRAY thinks so. He says Korea trades at a 24% discount to the region on a price-to-book value basis.

However, there are some reasons to be apprehensive about investing in EWY and Asia’s third largest economy. The biggest concern is that lately the country has become increasingly volatile. Rules are changed retrospectively, and tax treaties are ignored, the Financial Times reports. In addition, South Korea recently reported an unexpected fall in its September exports. The Bank of Korea announced it would closely watch currency movements, as the won rose to a two-month high. Its increase reflects growing anxiety that a strong currency would hurt the country’s export competitiveness, reports Cheon Jong-woo and Yoo Choonsik for Reuters.

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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.