The iShares MSCI South Korea ETF delivered an average annual return of 23% over the past three years, more than double the S&P 500’s three-year average. In calendar year 2025 alone, the fund achieved a 98% gain, ranking it among the top-performing country-specific ETFs globally. So far in 2026, the ETF has added 11% to its net asset value year to date, reflecting continued momentum driven by South Korea’s export-oriented economy and leadership in semiconductors.

EWY provides exposure to 90 of South Korea’s largest and most liquid companies, with roughly 30% of assets concentrated in the information technology sector. Its top three holdings are Samsung Electronics, Hyundai Motor Company and LG Display, which together represent 15% of total assets. The fund’s sector breakdown also includes a 14% allocation to consumer discretionary, 12% to communication services and 10% to materials, offering diversified exposure across the domestic economy.

South Korea’s economy, the world’s 14th largest by GDP, benefits from favorable trade balances in electronics and automobiles. The central bank’s accommodative policy stance and government incentives for technology investment provide potential catalysts for further equity gains. Investors should monitor geopolitical risks on the Korean Peninsula and currency fluctuations, but those seeking higher-growth international exposure may find EWY’s blend of blue-chip names and mid-cap innovators appealing for a core international sleeve.