This ASX-traded ETF tracks the performance of large and mid-cap South Korean companies, providing investors with broad exposure to Korea’s equity market. The countries stocks have endured a steeper sell-off than most global indices in recent weeks, as the market came under pressure, having previously benefited from the rebound in memory pricing and strong AI-driven demand for high-bandwidth memory (HBM) used in data centres.
Following its parabolic rise since mid-2025, the market was primed for profit-taking—similar to gold and silver earlier in the year—with declines amplified by Korea’s heavy concentration in memory semiconductors like Samsung and SK Hynix amid global tech weakness, as well as rising oil prices increasing cost pressures in this energy-importing economy. The IKO ETF, like the KOSPI, is heavily concentrated in Samsung and SK Hynix, which make up ~43% of the ETF, delivering excellent exposure to quality chip makers, albeit not broad-based.
- We can see further short-term weakness/volatility in the IKO ETF, but we like it medium term, believing in the future demand for chips/memory.
MM is cautiously bullish towards the IKO ETF around $190
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