The Horizons Korea KOSPI 200 ETF (NYSEArca: HKOR) could prove particularly useful. HKOR, which debuted in March, is the only U.S.-listed ETF that is a true proxy for South Korea’s benchmark KOPSI 200 Index. The KOSPI is one of the most widely used benchmarks in Asia. [Put South Korea ETFs on 2015 Lists]
Earlier this month, South Korea ETFs, including HKOR and the iShares MSCI South Korea Capped ETF (NYSEArca: EWY), received some positive news when Samsung Electronics said it intends to boost its 2014 dividend by 30% to 50%, a sign the company is bowing to demands from South Korean policymakers. Samsung is the largest holding in both EWY and HKOR.
Investors looking for a broad-based approach to Asia can consider the iShares S&P Asia 50 Index (NYSEArca: AIA). AIA tracks the S&P Asia Index, a benchmark of the 50 largest Asian equities. The $330.6 million ETF allocates over 80% of its combined weight to China, South Korea and Taiwan. Samsung is AIA’s largest holding at 11.1% of the fund’s weight. S&P Capital IQ rates the ETF marketweight.
iShares S&P Asia 50 Index
Tom Lydon’s clients own shares of EEM.