EWY vs FLKR: Comparing the Main US-Listed Korea ETFs
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EWY and FLKR both hold the large and mid-sized companies of the Korean stock market, and both are dominated by Samsung Electronics and SK hynix. The two main differences are cost and size: FLKR charges 0.09% a year against EWY’s 0.59%, while EWY is about 14 times larger (US$22.7 billion vs US$1.66 billion on October 14, 2026) and much cheaper to trade. They also follow different indexes, MSCI Korea 25/50 for EWY and FTSE South Korea RIC Capped for FLKR. The two indexes cap the chip giants differently: on October 14, 2026, Samsung and SK hynix made up 45.7% of EWY and 38.6% of FLKR.
In short
- Cost: 0.59% a year for EWY vs 0.09% for FLKR. In the funds’ own prospectus examples, US$10,000 held for 10 years at a 5% annual return costs US$738 in EWY and US$116 in FLKR.
- Concentration: On October 14, 2026, Samsung Electronics (common and preferred shares) and SK hynix weighed 22.96% and 22.70% in EWY, against 20.58% and 18.02% in FLKR. FLKR held 145 stocks and EWY 77.
- Returns: Over the 3 and 5 years to September 30, 2026, the two funds’ annualized NAV returns were within half a percentage point a year of each other.
- Trading: EWY’s 30-day median bid-ask spread was 0.02%, against 0.13% for FLKR, and EWY trades roughly US$2 billion of shares a day to FLKR’s US$40 million or so.
- Leverage: KORU (3x) and KRWX (2x) reset every day. Over the five years to September 30, 2026, KORU’s annualized NAV return was 9.37%, less than half the unleveraged index’s 20.79%.
EWY vs FLKR: how do the two funds compare?
The table sets the key facts side by side. Every figure comes from the issuer’s website, fact sheet, prospectus or holdings file; the Samsung and top-10 weights are our sums of each fund’s daily holdings.
| Feature | EWY | FLKR |
|---|---|---|
| Full name | iShares MSCI South Korea ETF | Franklin FTSE South Korea ETF |
| Issuer | BlackRock (iShares) | Franklin Templeton |
| Index | MSCI Korea 25/50 Index (Net) | FTSE South Korea RIC Capped Index (Net) |
| Exchange and inception | NYSE Arca, May 9, 2000 | NYSE Arca, November 2, 2017 |
| Expense ratio | 0.59% (prospectus, December 30, 2025) | 0.09% (prospectus, August 1, 2026) |
| Net assets | US$22.66 billion (Oct 14, 2026) | US$1.66 billion (Oct 14, 2026) |
| Number of holdings | 77 (Oct 14, 2026) | 145 (Oct 14, 2026) |
| Samsung Electronics, common + preferred | 22.96% (Oct 14, 2026) | 20.58% (Oct 14, 2026) |
| SK hynix | 22.70% (Oct 14, 2026) | 18.02% (Oct 14, 2026) |
| Ten largest positions | 60.4% (Oct 14, 2026) | 56.6% (Oct 14, 2026) |
| Information technology sector | 51.1% (Oct 14, 2026) | 46.3% (Oct 14, 2026) |
| 30-day median bid-ask spread | 0.02% (Oct 14, 2026) | 0.13% (Oct 14, 2026) |
| Average daily volume | 12.9 million shares, 30-day (Oct 14, 2026) | 0.78 million shares, 20-day (Oct 14, 2026) |
| Distributions | Annual (December) | Semi-annual (June and December) |
| Paid in the last 12 months | US$2.04 per share (December 2025) | US$1.47 per share (December 2025 and June 2026) |
| Portfolio turnover | 49% (year to Aug 31, 2025) | 30% (year to Mar 31, 2026) |
| Creations and redemptions | Cash | Generally cash |
| 5-year NAV return, annualized | 20.31% (to Sep 30, 2026) | 19.84% (to Sep 30, 2026) |
Size matters mainly for trading. At the October 14 closing prices, EWY’s average volume is worth about US$2.1 billion a day and FLKR’s about US$41 million (our estimate). For a long-term holder, the 0.50-point fee gap is the largest difference you can predict in advance.
What do EWY and FLKR hold?
Both funds buy shares listed on KRX (Korea Exchange) in Seoul and weight them by free-float market value. Neither screens for valuation or governance, so both reflect the market as it is, including what is often called the Korea discount. The ten largest positions on October 14, 2026:
| Rank | EWY | Weight | FLKR | Weight |
|---|---|---|---|---|
| 1 | Samsung Electronics | 22.91% | Samsung Electronics | 18.21% |
| 2 | SK hynix | 22.70% | SK hynix | 18.02% |
| 3 | Samsung Electro-Mechanics | 2.83% | SK Square | 3.85% |
| 4 | SK Square | 2.66% | Samsung Electro-Mechanics | 3.83% |
| 5 | KB Financial Group | 2.07% | KB Financial Group | 2.75% |
| 6 | Shinhan Financial Group | 1.59% | Samsung Electronics (preferred) | 2.37% |
| 7 | Hyundai Motor | 1.51% | Hyundai Motor | 2.13% |
| 8 | Samsung SDI | 1.49% | Shinhan Financial Group | 2.01% |
| 9 | Hana Financial Group | 1.39% | Samsung SDI | 1.76% |
| 10 | Doosan Enerbility | 1.22% | Hana Financial Group | 1.62% |
The two portfolios overlap heavily, but there are three visible differences. FLKR holds 2.37% in Samsung’s preferred shares, while EWY holds only 0.05%. FLKR’s extra 68 holdings reach further into smaller companies: on October 14, 13.0% of its equity was in companies worth less than US$10 billion. And EWY leans more to technology (51.1% vs 46.3%), while FLKR has a little more in industrials (20.8% vs 18.5%) and financials (12.7% vs 11.2%).
Both funds hold SK hynix’s Seoul shares (KRX code 000660), not its Nasdaq ADR, SKHY. Their SK hynix exposure is therefore unaffected by the ADR’s premium over Seoul, which you can follow on our SKHY premium tracker. Company profiles: Samsung Electronics and SK hynix.
How do capping rules limit Samsung and SK hynix?
A US fund that wants to be taxed as a regulated investment company (RIC), and so avoid tax at the fund level, must pass a diversification test at the end of each quarter of its tax year. No more than 25% of its assets may be in a single issuer, and issuers above 5% may not add up to more than 50%. The Korean market fails that test on its own. In September 2026, according to KOFIA (Korea Financial Investment Association), Samsung Electronics averaged 30.0% of KOSPI market value (common and preferred shares) and SK hynix 22.8%.
MSCI Korea 25/50 (EWY)
MSCI applies the 25% and 50% limits to “group entities”, meaning listed companies that MSCI judges to be under common control; it checks stakes of 20% or more. To leave room for price moves, it rebalances to tighter limits: 22.5% for any group entity and 45% for all those above 4.5%. Changes take effect at the end of February, May, August and November, and MSCI does not rebalance between reviews even if the limits are breached. An optimizer keeps the capped index as close as possible to the uncapped MSCI Korea Index.
FTSE South Korea RIC Capped (FLKR)
FTSE Russell’s limits are tighter: at each quarterly capping, no constituent may exceed 20%, and constituents above 4.5% may not exceed 48% in total. Index membership is reviewed twice a year. FLKR’s prospectus describes the same rule in tax-test terms: no issuer above 25%, and issuers above 5% no more than 50% combined.
Between reviews, weights drift with prices. After the first-half rally, SK hynix was 27.17% of EWY on June 30, 2026, before falling back to 22.70% by October 14. Capping also has a performance cost when the giants lead. In 2025 the uncapped FTSE South Korea Index returned 95.39% against 92.31% for the capped version FLKR tracks. In the year to March 31, 2026, the gap was 116.73% vs 111.39%. When the two chipmakers lag the rest of the market, capping helps instead.
Which has performed better, EWY or FLKR?
Neither has been consistently ahead. The table shows average annual total returns in US dollars to September 30, 2026, with distributions reinvested. “NAV” is the return on the fund’s net asset value; “price” uses the closing market price.
| Period to Sep 30, 2026 | EWY NAV | EWY price | MSCI Korea 25/50 | FLKR NAV | FLKR price | FTSE S. Korea Capped |
|---|---|---|---|---|---|---|
| 1 year | 133.99% | 133.38% | 137.71% | 135.02% | 132.55% | 134.36% |
| 3 years, annualized | 49.17% | 49.38% | 50.10% | 49.43% | 49.31% | 49.28% |
| 5 years, annualized | 20.31% | 20.29% | 20.79% | 19.84% | 19.90% | 19.78% |
Calendar-year NAV returns show the same back-and-forth:
| Year | EWY NAV | MSCI Korea 25/50 | FLKR NAV | FTSE S. Korea Capped |
|---|---|---|---|---|
| 2021 | -7.56% | -7.03% | -6.59% | -6.44% |
| 2022 | -26.70% | -26.95% | -28.31% | -28.32% |
| 2023 | 19.05% | 20.91% | 20.99% | 20.62% |
| 2024 | -20.79% | -19.88% | -19.46% | -19.36% |
| 2025 | 97.57% | 95.64% | 91.79% | 92.31% |
| 2026 to Sep 30 | 86.11% | 88.90% | 88.54% | 87.85% |
The gap between a fund and its index is its tracking difference. In 2021–2025, FLKR’s NAV stayed within about half a point of its index each year, while EWY’s ranged from 1.86 points behind (2023) to 1.93 points ahead (2025). iShares says such gaps may be due to its use of systematic fair-value pricing, which adjusts the NAV for market moves after Seoul closes (see the last section). In the third quarter of 2026, for example, EWY’s NAV fell 9.56% while its index fell 6.66%. Over long periods these timing effects tend to wash out, and the fee gap remains.
How are EWY and FLKR taxed for US investors?
Korean tax inside the fund
Korea withholds tax on dividends the funds receive. In the year to March 31, 2026, FLKR’s annual report shows US$706,934 of foreign tax withheld on US$4.44 million of dividends, about 16%. Korea’s default rate for foreign investors is 22%; rates and treaty rules are in our guide to Korean stock taxes for foreigners. Both funds’ “net” indexes deduct withholding at the maximum rate for non-residents, which iShares notes is often higher than the rate the fund actually pays.
Foreign tax credit
Both funds have said they intend to pass the Korean tax through to shareholders. For its year to August 31, 2025, EWY reported US$83.2 million of foreign-source income and US$12.8 million of foreign taxes paid. For its year to March 31, 2026, FLKR reported US$4.90 million and US$0.71 million. Your share appears on Form 1099-DIV, and you can generally claim it as a foreign tax credit or a deduction, as explained in IRS Publication 514.
Distributions and capital gains
EWY pays once a year, in December; its December 2025 payment was US$2.04 per share, all income, and its distributions from 2016 to 2025 included no capital gains. FLKR pays twice a year: US$0.066 in June 2025, US$1.174 in December 2025 and US$0.298 in June 2026, all income. Divided by each fund’s October 14, 2026 NAV, the last 12 months of payouts come to about 1.3% for EWY and 2.7% for FLKR. iShares’ own trailing 12-month yield for EWY was 1.11% at September 30, 2026. Both trailing figures look back to a period when Korean prices were far lower.
Both funds create and redeem shares mainly for cash rather than in kind. Their prospectuses warn that this can force the fund to sell holdings and realize gains that an in-kind ETF might avoid. Trading costs inside the fund, including Korea’s securities transaction tax on the fund’s own sales, are not part of the expense ratio. Investors outside the US face different withholding and reporting rules on US-listed ETFs, so check with your broker.
Is EWY or FLKR the better Korea ETF?
It depends on how the fund is used, not on which holds “better” companies; the portfolios are close. The fee difference compounds for buy-and-hold investors. The spread and depth of trading matter more for large or frequent trades, where EWY’s 0.02% median spread compares with FLKR’s 0.13%. The different caps matter if you want more or less of Samsung and SK hynix. Both trade on NYSE Arca like any US-listed stock. To buy individual Korean shares instead, see how to buy Korean stocks and our broker-by-broker guide.
Index families also differ in how they classify Korea. MSCI still treats it as an emerging market, while FTSE Russell treats it as developed (see MSCI and Korea’s developed-market bid). That changes which global funds hold Korea, but not what EWY and FLKR own.
What other Korea ETFs trade in the US?
| Ticker | Fund | Approach | Expense ratio | Source date |
|---|---|---|---|---|
| MKOR | Matthews Korea Active ETF | Actively managed | 0.79% | Prospectus, Apr 30, 2026 |
| KDEF | PLUS Korea Defense Industry Index ETF | Korean defense stocks | 0.65% | Prospectus, Mar 30, 2026 |
| KCHP | KICK Korea Semiconductor Index ETF | About 20 chip stocks | 0.65% | Prospectus, Sep 9, 2026 |
| KSMH | xETFs Korea AI Semiconductor ETF | Active, 10–25 chip stocks | 0.65% after waiver (0.75% gross) | Prospectus, Aug 11, 2026 |
| KORU | Direxion Daily MSCI South Korea Bull 3X ETF | 3x the MSCI Korea 25/50, daily | 1.32% (0.95% excluding acquired fund fees) | Direxion, Oct 2026 |
| KRWX | Corgi South Korea 2x Daily ETF | 2x EWY, daily | 0.45% | Prospectus, May 28, 2026 |
Several Korea funds have closed. The Xtrackers MSCI South Korea Hedged Equity ETF (DBKO), which hedged the won, last traded on November 12, 2019. The iShares Currency Hedged MSCI South Korea ETF (HEWY) was liquidated on August 20, 2020. Direxion’s 3x bear fund on Korea (KORZ) stopped trading on September 23, 2014. As of October 2026, we found no currency-hedged or broad inverse Korea ETF listed in the US.
Why do leveraged Korea ETFs need extra caution?
KORU aims for three times the index’s return for a single day only. Its October 15, 2026 holdings file shows it gets that exposure mainly through EWY shares and swaps on EWY. Because the leverage resets daily, long-run results depend on the path the market takes. To September 30, 2026, KORU’s NAV and the MSCI Korea 25/50 Index returned:
- third quarter of 2026: -48.78% for KORU, against -6.66% for the index;
- one year: +282.43%, against +137.71%;
- five years, annualized: 9.37%, against 20.79%;
- ten years, annualized: 3.92%, against 14.94%.
Direxion warns that a total loss can occur in a single day even if the index does not lose all its value. KRWX works the same way at 2x. Single-stock leveraged funds on the SKHY ADR are covered in our guide to Korean stocks in the US.
How do Korea ETFs trade when the Korean market is closed?
EWY and FLKR trade on NYSE Arca from 09:30 to 16:00 New York time, which is 22:30 to 05:00 KST while the US is on daylight saving time. KRX’s regular session ends at 15:30 KST, and the latest Seoul trading ends at 20:00. So the ETFs trade entirely while Seoul is shut, and their prices react to news and to markets that are open overnight. A fund’s NAV, by contrast, normally uses the last Seoul prices. A premium or discount to that NAV often reflects the expected next-day move, not mispricing. Session times are in our guide to Korean market hours.
October 14, 2026 shows how this works. FLKR’s NAV, based on Seoul’s close, was almost unchanged (-0.02%), but its market price fell 3.79%, leaving it at a 1.99% discount. EWY uses fair-value pricing: iShares reported a NAV of US$159.17 against US$163.52 before fair-value adjustment, and EWY closed at a 0.42% premium. Both funds traded on the same news; the difference lay in how each NAV was struck.
Korean holidays widen these gaps. KRX was closed on September 24–25 (Chuseok), October 5 and October 9, 2026, while both ETFs kept trading. Over time, creations and redemptions by authorized participants, the large dealers who exchange ETF shares with the fund, pull prices back toward NAV. EWY closed at a premium on 123 days of 2025 and at a discount on 124. FLKR’s average premium since inception is 0.07%. That is very different from an ADR such as SKHY, where limits on depositing new shares can let a premium persist. More on this in our explainer on ETF premiums, discounts and tracking error.
Note: Holdings, assets, spreads and yields change daily, and fees can change with each new prospectus. Check the fund pages listed below before you trade. Performance figures are past results and use each issuer’s own methodology.
Frequently asked questions
Which is cheaper, EWY or FLKR?
FLKR. Its expense ratio is 0.09% a year (prospectus dated August 1, 2026), against 0.59% for EWY (prospectus dated December 30, 2025). EWY is much larger and has a tighter bid-ask spread, which matters more for big or frequent trades.
How much Samsung Electronics and SK hynix does EWY hold?
On October 14, 2026, Samsung Electronics (common and preferred shares) was 22.96% of EWY and SK hynix 22.70%, 45.7% combined. In FLKR the same two companies were 20.58% and 18.02%, 38.6% combined.
Why does FLKR own more stocks than EWY?
FLKR follows a broader FTSE index that had 156 securities on May 31, 2026, while EWY samples the narrower MSCI Korea 25/50 Index. On October 14, 2026, FLKR held 145 stocks and EWY 77.
Can KORU be held as a long-term Korea investment?
KORU targets three times the MSCI Korea 25/50 Index's return for one day only, so long-run results depend on the market's path. Over the five years to September 30, 2026, its annualized NAV return was 9.37%, against 20.79% for the unleveraged index.
When do EWY and FLKR pay dividends?
EWY pays once a year in December (US$2.04 per share in December 2025). FLKR pays twice a year, in June and December (US$1.174 in December 2025 and US$0.298 in June 2026).
Is there a currency-hedged Korea ETF in the US?
Not that we could find as of October 2026. The two former hedged funds, Xtrackers DBKO and iShares HEWY, closed in November 2019 and August 2020.
Last reviewed: October 16, 2026.
Sources
- iShares MSCI South Korea ETF (EWY) fund page and daily holdings file, BlackRock, data as of October 14, 2026 (performance to September 30, 2026)
- iShares MSCI South Korea ETF fact sheet, BlackRock, June 30, 2026
- iShares MSCI South Korea ETF summary prospectus (Form 497K), BlackRock / US SEC EDGAR, December 30, 2025
- iShares, Inc. annual financial statements, year ended August 31, 2025 (Form N-CSR, incl. important tax information), US SEC EDGAR, November 5, 2025
- Franklin FTSE South Korea ETF (FLKR) fund page: holdings, pricing and distributions, Franklin Templeton, data as of October 14, 2026
- Franklin FTSE South Korea ETF fact sheet, Franklin Templeton, September 30, 2026
- Franklin FTSE South Korea ETF summary prospectus (Form 497K), Franklin Templeton / US SEC EDGAR, August 1, 2026
- Franklin Templeton ETF Trust annual reports and financial statements, year ended March 31, 2026 (Form N-CSR), US SEC EDGAR, June 3, 2026
- MSCI 25/50 Indexes Methodology, MSCI, August 2021; Results of the MSCI 2026 Market Classification Review, MSCI, June 23, 2026
- FTSE South Korea RIC Capped Index factsheet, FTSE Russell, December 31, 2025; FTSE Russell capped indices, LSEG, accessed October 2026; FTSE Equity Country Classification, September 2026 Annual Announcement, FTSE Russell, October 6, 2026
- September 2026 market-cap weights of Samsung Electronics and SK hynix (in Korean), Korea Financial Investment Association, October 1, 2026
- Direxion Daily MSCI South Korea Bull 3X ETF (KORU) fund page and daily holdings file, Direxion, October 14–15, 2026 (performance to September 30, 2026)
- Other fund documents, US SEC EDGAR: Matthews Korea Active ETF, April 30, 2026; PLUS Korea Defense Industry Index ETF, March 30, 2026; KICK Korea Semiconductor Index ETF, September 9, 2026; xETFs Korea AI Semiconductor ETF, August 11, 2026; Corgi South Korea 2x Daily ETF, May 28, 2026 (summary prospectuses)
- Closed Korea funds: DBX ETF Trust supplement on liquidating DBKO, October 24, 2019; iShares Trust supplement on liquidating HEWY, August 20, 2020; Rafferty Asset Management closing five leveraged ETFs, including KORZ, HedgeCo.net, September 3, 2014
- Publication 514, Foreign Tax Credit for Individuals, Internal Revenue Service
This guide explains how the Korean market works for general information. It is not investment, legal or tax advice; rules change, so check the official sources listed above or a qualified adviser before acting.