Amundi MSCI Korea UCITS ETF Acc

Issuer: Amundi ETF

Asset Class: Equity

TER: 45bps

Trading Currency: USD

Pays Income: False

Listing Date: 22 Feb 2019

Ticker: KRW

ISIN: LU1900066975

This investment vehicle offers targeted exposure to the South Korean equity market by aiming to replicate the performance of the MSCI Korea 20/35 Index. It provides a convenient and cost-effective way to invest in one of Asia's most technologically advanced economies, home to some of the world's leading companies in electronics, automotive, and heavy industry. The fund utilizes a synthetic replication methodology, which can help in achieving precise tracking of the benchmark index. This structure is suitable for investors seeking specific, single-country exposure within their global equity allocation.

The underlying index comprises large and mid-capitalization companies representing approximately 85% of the free float-adjusted market capitalization in South Korea. The portfolio is consequently concentrated in globally recognized technology and manufacturing giants. Key sector exposures typically include Information Technology, driven by semiconductor and hardware producers, alongside Consumer Discretionary, Financials, and Industrials. The '20/35' constraint in the index methodology ensures a degree of diversification by limiting the weight of the largest single constituent to 35% and all other companies to 20%, mitigating concentration risk in what can be a top-heavy market.

This product can serve as a strategic or tactical tool for investors with a bullish view on South Korea's economic prospects, its pivotal role in global supply chains, and its continuous innovation. As an accumulating fund, any dividends paid by the constituent companies are automatically reinvested, which facilitates the power of compounding and is ideal for investors focused on long-term capital appreciation. It allows for participation in the growth potential of the Korean market without the complexity of direct stock selection.