Korea hedged equity ETFs, WisdomTree Korea Hedged Equity Fund (NasdaqGM: DXKW) and db X-trackers MSCI South Korea Hedged Equity Fund (NSYEArca: DBKO), which both try to limit the effects of currency fluctuations, would underperform non-hedged ETFs if the won continued to strengthen against the U.S. dollar. DXKW was up 0.7% Thursday and DBKO was down 0.8%.

FKO and EWY do not hedge their currency risk, so an appreciating won would make the Korean won-denominated assets worth more in U.S. dollar terms.

However, potential investors should keep in mind that FKO, DXKW and DBKO have relatively low assets and should utilize limit orders to better execute any trades on the securities.

First Trust South Korea AlphaDEX Fund

For more information on South Korea, visit our South Korea category.

Max Chen contributed to this article.