That could be set to change as South Korean policymakers pressure cash-rich firms there to share more of their cash hoards with investors. [South Korea ETFs Could Get Dividend Love]
Low payout ratios indicate South Korea and the aforementioned have a long way to go to catch up to China and Taiwan in terms of dividends. As a result, South Korea ETFs could, in the future, be dividend growth ideas for conservative emerging markets investors.
If a Kospi rise is accompanied by a fall in the won, theWisdomTree Korea Hedged Equity Fund (NasdaqGM: DXKW) and the Deutsche X-trackers MSCI South Korea Hedged Equity ETF (NYSEArca: DBKO), which hedges dollar/won fluctuations, could be leaders of the South Korea ETF pack. Those two ETFs have already shown the advantages of hedging won exposure as the pair is off an average of 7.7% over the past 90 days, a loss that is significantly less than EWY’s.
Horizons Korea KOSPI 200 ETF