South Korea ETFs: Powering Emerging Market Gains
South Korea’s semiconductor boom is driving emerging markets higher—here’s how ETFs are capturing that momentum.
Although market uncertainty was elevated in the early months of 2026, Korean equities have performed exceptionally well, lifting the emerging market equities asset class. The MSCI Korea Total Return Index has returned 51.58% year-to-date (as of April 17, 2026), versus 14.32% for the MSCI Emerging Markets Total Return Index.
What’s Propelling South Korean Equities?
The artificial intelligence trade is back in full swing, with South Korean chipmakers benefiting from the momentum. South Korea’s equity market is being propelled by increased demand for semiconductors and the elevated prices hyperscalers are willing to pay to acquire them. This heightened demand is evident in recent reports from the largest firms in the Korean equities market, Samsung and SK Hynix.
SK Hynix Inc., a South Korean semiconductor company that manufactures dynamic random-access memory and flash memory chips, has begun mass production of a next-generation memory module for Nvidia’s Vera Rubin artificial intelligence chip. Nvidia unveiled Vera Rubin earlier this year, and the line is set to succeed its Blackwell processor line. Initial shipments are expected to begin in the second half of 2026. As reported by Reuters earlier this month, Samsung posted a sixfold jump in quarterly profit, underscoring robust demand for the firm’s chips.
While Korea’s participation in the AI value chain through semiconductors is top of mind right now, Korean companies also operate in AI-related fields, including robotics, power equipment, and nuclear power. Furthermore, there are firms with exposure to industrial themes spanning defence and shipbuilding, two sectors they believe are likely to benefit from US reindustrialization efforts.
Gaining Korean Equities Exposure via ETFs
For Canadian investors seeking exposure to Korean equities, there are no Canadian-listed ETFs that provide single-country exposure. However, there are emerging equity solutions that offer material exposure to the nation’s equity market, namely:
The Vanguard FTSE Developed Asia Pacific All Cap Index ETF (Ticker: VA), which seeks to track the performance of the FTSE Developed Asia Pacific All Cap Index. The fund will invest primarily in large-, mid-, and small-capitalization stocks of companies located in developed Asia Pacific markets. As of March 2026, the fund has a 17.77% country allocation to Korea.
The iShares Core MSCI Emerging Markets Index ETF (Ticker: XEC) which replicates the performance of the MSCI Emerging Markets Investable Market Index. As of April 17th, the fund has a 17.14% to Korea
TheBMO MSCI Emerging Markets Index (Ticker: ZEM) which replicates the MSCI Emerging Markets Index. As of April 17th, the fund has a 17.92% to Korea.
This article was written on April 21st, 2026. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
