For its part, DXKW has shown that if the won does weaken in earnest, the ETF is poised to benefit. The ETF confirms as much because in its short lifespan, the won has strengthened and the fund is down 7.7%.
South Korea is home to the world’s 15th-largest economy, third-largest equity market in the Pacific Rim and is is the 7th-largest exporter and the 10th-largest importer in the world, according WisdomTree Research Director Jeremy Schwartz, prompting some debate as to whether the country is emerging or developed. [WisdomTree: Is South Korea Developed or Emerging?]
WisdomTree Korea Hedged Equity Fund
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of DXJ.