Is IKO a good ETF?
IKO is the iShares MSCI South Korea ETF from iShares. We classify it under Asia. With about $198 million in assets it is a solidly established fund.
On a total-return basis, IKO has delivered 15.37% a year over 10 years (ranked 9th of 110 ETFs we track), 21.17% a year over 5 years (ranked 5th of 189 ETFs we track), 45.88% a year over 3 years (ranked 4th of 236 ETFs we track), and 125.6% a year over 1 year (ranked 1st of 318 ETFs we track). Its strongest showing is over 1 year, where it sits in the top 0% of all ETFs we track.
The management fee of 0.45% is on the higher side. That's cheaper than the typical 0.64% for similar ETFs. If cost is your priority, IAA (0.29%) and VAE (0.4%) cover similar ground for less. It pays a healthy 5.3% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 10 years its volatility has been high (annualised standard deviation around 26.64%), meaning a bumpy ride with deep drawdowns. Its 10-year Sharpe ratio of 0.58 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Top-0% returns over 1 year (1st of 318 ETFs we track).
- Pays a useful 5.3% income yield.
Things to watch
- Cheaper alternatives exist: IAA and VAE.
- High volatility (26.64% over 10 years) — expect deep drawdowns.
What IKO's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Equities across Asian markets (often ex-Japan, frequently weighted to China, India, Taiwan and Korea). Exposure to faster-growing economies, with extra political, currency and governance risk.
- Market regime
- Tends to lead during global risk-on phases and when the US dollar is weak; lags badly in risk-off, flight-to-safety episodes.
- In a portfolio
- Best used as a satellite position to add growth and diversification, not as a core holding. Long horizon and tolerance for big swings required.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.