iShares MSCI South Korea ETF (EWY): Complete Beginner's Guide

What is iShares MSCI South Korea ETF?

EWY invests in South Korean companies with heavy concentration in semiconductors, automotive, and technology manufacturing. Samsung Electronics alone makes up a substantial portion of the fund, reflecting its dominance in the Korean economy. This fund provides access to one of Asia's most advanced and export-oriented technology economies.

EWY is managed by BlackRock and has been available since 2000. With $4.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.59%, which means for every $10,000 you invest, you pay approximately $59 per year in management fees.

EWY at a Glance — Key Metrics

Top 10 Holdings in EWY

EWY holds 110 different securities. Here are the largest positions that make up the core of this fund:

EWY Performance History

Here's how EWY has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

Beginner Suitability Score: 8.5/10

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

EWY scores 8.5/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 110 holdings, and has been available since 2000, giving it a proven track record.

How to Buy EWY — Step by Step

1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
3. Search for "EWY" — Use the search bar in your brokerage platform to find iShares MSCI South Korea ETF.
4. Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
5. Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

EWY Sector Allocation

Here's how EWY distributes its investments across different sectors of the economy:

Dollar Cost Averaging Into EWY

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With EWY's expense ratio of 0.59%, a $10,000 investment would lose approximately $4,837 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.

Pros and Cons of EWY

Frequently Asked Questions