My ETF Journey

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

Last updated: March 2026BlackRock South Korea Equity

Expense Ratio

0.59%

AUM

$4.0B

Dividend Yield

1.50%

Inception

2000

Beginner Score

8.5/10

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

Expense Ratio0.59%
Total Holdings110
P/E Ratio11.0
Beta1.10
Dividend Yield1.50%
AUM$4.0B
Inception Year2000
IssuerBlackRock

Top 10 Holdings in EWY

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

#CompanyTickerWeight
1Samsung Electronics005930.KS22.00%
2SK Hynix000660.KS8.00%
3Hyundai Motor005380.KS4.00%
4Samsung SDI006400.KS3.00%
5Kia Corp.000270.KS3.00%
6POSCO Holdings005490.KS2.50%
7LG Energy Solution373220.KS2.50%
8Samsung Biologics207940.KS2.00%
9Naver Corp.035420.KS2.00%
10KB Financial Group105560.KS1.80%

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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:

YTD

3.00%

1 Year

8.00%

3 Year

-2.00%

5 Year

4.00%

10 Year

4.00%

Beginner Suitability Score: 8.5/10

Great for Beginners

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.

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):

Monthly10 Years20 Years30 Years
$100/mo$18,417$59,295$150,030
$250/mo$46,041$148,237$375,074
$500/mo$92,083$296,474$750,148

*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.

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Pros and Cons of EWY

Pros

  • Dominant semiconductor exposure through Samsung and SK Hynix at a lower valuation than US chip stocks
  • South Korea is a global leader in memory chips, batteries, and display technology
  • Attractive price-to-earnings ratio compared to US and other developed technology markets
  • Strong corporate governance reforms are improving shareholder returns and buybacks

Cons

  • Extreme concentration in Samsung Electronics creates significant single-stock risk
  • Geopolitical tension with North Korea adds a persistent risk premium to Korean assets
  • Won currency volatility can meaningfully impact dollar-denominated returns

Frequently Asked Questions

Is EWY a good ETF for beginners?

EWY has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.

What is the expense ratio of EWY?

EWY has an expense ratio of 0.59%. This means for every $10,000 you invest, you pay approximately $59 per year in fees. This is considered very low and cost-efficient.

How much money do I need to invest in EWY?

You can invest in EWY with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.

Does EWY pay dividends?

Yes, EWY pays dividends with a current yield of approximately 1.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.

What are the top holdings in EWY?

The top holdings in EWY include Samsung Electronics (22.00%), SK Hynix (8.00%), Hyundai Motor (4.00%), and more. The fund holds 110 total positions, providing broad diversification across many companies.