Key Highlights

  • IKO tracks the MSCI Korea 25/50 Net TR index and provides exposure entirely concentrated in South Korea, with geographic exposure recorded at 100 percent South Korea.
  • The fund reported net Assets of $183.92 million and a management fee of 0.45 percent per annum, having traded on ASX since 15 November 2007.
  • Risk metrics show a Beta of 3.66 and a Standard Deviation of 60.36, both notably elevated figures compared with other Asian Equity funds examined here.

Fund Structure and Risk Profile

The iShares MSCI South Korea ETF (ASX:IKO) seeks to achieve its objective by tracking the performance of the MSCI Korea 25/50 Net TR Index in Australian dollars, providing investors with exposure concentrated in South Korean listed companies. Admitted to ASX trading on 15 November 2007, the fund is categorised under Equity World Other given its single-country focus and carries a management fee of 0.45 percent per annum.

The fund reported net assets of $183.92 million and 738,648 units on issue. Risk metrics show a beta of 3.66 and a standard deviation of 60.36, both figures notably elevated relative to other Asian equity funds examined here, reflecting the fund's concentrated exposure to a small number of large technology names and the greater historical variability associated with the South Korean equity market.

Sector Composition and Concentration

IKO's sector allocation is dominated by Technology at 54.55 percent, more than double the category average of 24.99 percent, followed by Industrials at 17.02 percent, above the category's 13.12 percent. Financial Services stands at 11.02 percent, below the category average of 13.54 percent, while Healthcare exposure of 3.30 percent trails the category figure of 24.41 percent by a wide margin.

Geographic exposure is entirely concentrated in South Korea at 100.00 percent, compared with a category average of 6.31 percent given the category's broader global composition. The fund held 99.81 percent of assets in equities and 0.19 percent in cash. The portfolio's Turnover ratio was recorded at 1.97 percent.

Holdings, Returns and Distributions

The portfolio's top ten holdings account for 60.94 percent of total assets across 84 companies, with two positions dominating the fund's structure. SK hynix Inc is the largest holding at 23.75 percent, followed closely by Samsung Electronics at 22.31 percent, together representing close to half of total assets. SK Square, Samsung Electro-Mechanics, KB Financial Group, Hyundai Motor, Shinhan Financial Group, Hana Financial Group and Hanwha Aerospace complete the remaining top ten names.

The fund declared a final distribution of $13.985 per unit, producing an annual distribution Yield of 5.61 percent, with an ex-date of 1 July 2026 and payment date of 13 July 2026.