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South Korea: Developed or Emerging?

Due to a lack of consensus on the issue, many foreign large-blend and emerging-markets funds are underweight South Korean firms.

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Patty Oey: IShares MSCI South Korea is a fund to consider for those who like to take a proactive approach in managing their international-equity allocation. South Korea is home to global heavyweights such as Samsung Electronics and automakers, Hyundai and Kia, as well as major exporters in the electronics, technology, consumer, and machinery industries.

Interestingly, within the asset management industry, there isn't any consensus on whether South Korea should be classified as a developed market or as an emerging market. So, actually, as a result, the average foreign large-blend fund as well as the average emerging-markets fund is actually underweight South Korea. So this fund can be used to top up an underweight exposure to South Korea.

Patricia Oey has a position in the following securities mentioned above: EWY. Find out about Morningstar’s editorial policies.