IKO AU

Ishares MSCI South Korea ETF Guide (IKO) and Details

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Overview

The iShares MSCI South Korea ETF (IKO) gives Australian investors access to a focused portfolio of South Korean shares. Its profile is shaped by a strong technology weighting and large positions in SK Hynix and Samsung Electronics, making concentration a central feature to understand alongside its reported returns and costs.

Category

IKO offers exposure to South Korean equities, with a pronounced emphasis on technology and major listed companies. The portfolio also includes industrial and financial businesses, but its largest positions are dominant enough that the fund’s overall experience may differ from a more broadly diversified international equity fund.

The portfolio combines exposure to South Korea’s major technology businesses with industrial, financial and consumer companies. Its sector mix and leading semiconductor-related holdings make chip-sector conditions an important influence on the fund, while its large-company concentration can amplify company-specific effects.

 

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Key facts

Ticker
IKO
Exchange
AU
ISIN
AU000000IKO6
Provider
iShares
Domicile
Australia
Currency
AUD
Inception date
2000-05-09
Use of income
Annually
UCITS
No

Costs

TER
0.57%
Ongoing charge
0.57%
Net expense ratio
0.57%
AUM
6

The supplied profile lists an ongoing charge of 0.57%. Brokerage, bid–ask spreads and other trading costs may also apply.

Performance

YTD
84.7%
1 year
117.4%
3 years
47.5%
5 years
21.3%
10 years
15.3%
Dividend yield
5.57%
Top 10 concentration
61.2%

Holdings

  1. SK Hynix Inc.24.79%
    Ticker
    000660
    Sector
    Country
    Korea

  2. Samsung Electronics Co Ltd21.53%
    Ticker
    005930
    Sector
    Country
    Korea

  3. SK Square Co. Ltd.2.79%
    Ticker
    402340
    Sector
    Country
    Korea

  4. Samsung Electro-Mechanics Co. Ltd.2.56%
    Ticker
    009150
    Sector
    Other
    Country
    Korea

  5. KB Financial Group Inc2.07%
    Ticker
    105560
    Sector
    Country
    Korea

  6. Hyundai Motor Co1.76%
    Ticker
    005380
    Sector
    Country
    Korea

  7. Shinhan Financial Group Co. Ltd.1.62%
    Ticker
    055550
    Sector
    Other
    Country
    Korea

  8. Hana Financial Group Inc.1.40%
    Ticker
    086790
    Sector
    Other
    Country
    Korea

  9. Hanwha Techwin Co. Ltd.1.37%
    Ticker
    012450
    Sector
    Other
    Country
    Korea

  10. Samsung SDI Co Ltd1.29%
    Ticker
    006400
    Sector
    Country
    Korea

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Technology accounts for 56.748% of the portfolio. SK Hynix and Samsung Electronics are the largest holdings, at 24.793% and 21.527%, respectively; the top ten holdings together represent 61.187%. Other prominent names include SK Square, Samsung Electro-Mechanics and KB Financial Group. This concentration means the fund’s results can be particularly sensitive to the fortunes of its largest companies.

Sectors

  • Technology56.7%

  • Industrials16.4%

  • Financial Services10.1%

  • Consumer Cyclicals4.3%

  • Healthcare3.0%

  • Communication Services2.8%

  • Consumer Defensive2.1%

  • Basic Materials1.3%

  • Energy1.3%

  • Utilities0.4%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

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Risks

Who it may suit

This fund may interest investors researching focused exposure to South Korean shares, particularly its technology-heavy large companies. Its substantial exposure to a small number of holdings means it may be less suitable for those seeking broad diversification from a single ETF.

Key risks

The fund is concentrated in one country, with more than half of its portfolio in technology and 61.187% in its top ten holdings. Its largest two positions alone represent over 46% of the portfolio. This creates exposure to company-specific events, sector cycles and the risks associated with a narrow geographic focus. Currency movements may also affect outcomes for Australian investors. The supplied profile reports strong recent returns, but past performance does not predict future results.

FAQ

What does the iShares MSCI South Korea ETF invest in?

It provides exposure to South Korean companies, with the supplied portfolio data showing a strong technology tilt and large positions in SK Hynix and Samsung Electronics.

How concentrated is IKO’s portfolio?

Its top ten holdings account for 61.187% of the portfolio. SK Hynix and Samsung Electronics together make up just over 46%, so their performance can have a substantial influence on the fund.

Does IKO pay distributions?

The supplied profile lists distributions as annual and reports a dividend yield of 5.571%. Distribution amounts and yields can change.

What is IKO’s ongoing charge?

The supplied profile lists an ongoing charge of 0.57%.

*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.

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