ISHARES MSCI SOUTH KOREA INDEX FUND $59.87 (New York Exchange symbol EWY; buy or sell through brokers), is an exchange traded fund that aims to track the MSCI Korea Index.

The fund’s top holdings are Samsung Electronics, 20.8%; Hyundai Motor Co., 5.3%; Posco (steel), 4.4%; Hyundai Mobis (auto parts), 3.0%; LG Chemical, 3.0%; Shinhan Financial, 3.0%; Kia Motors, 2.7%; KB Financial, 2.4%; Hynix Semiconductor, 2.4%; and Hyundai Heavy Industries, 2.1%.

The fund’s industry breakdown is as follows: Information Technology, 30.8%; Consumer Discretionary, 16.3%; Industrials, 14.7%; Financials, 13.9%; Materials, 13.0%; Consumer Staples, 4.5%; Energy, 3.3%; Telecommunication Services, 0.9%; Utilities, 1.2%; and Health Care, 0.6%.

iShares MSCI South Korea Index Fund was launched on May 9, 2000. The ETF has an expense ratio of 0.59%.

South Korea has Asia’s fourth-largest economy, but it only grew by 0.4% in the fourth quarter of 2011. The country is heavily reliant on exports, and China is now its biggest market. However, South Korea’s exports to China have slowed, as have its sales to the U.S. and Europe. Even so, South Korea’s economy could rebound and grow by as much as 3.7% in 2012.

The death of North Korean leader Kim Jong-il in December 2011 put his son, Kim Jong-un, in charge of South Korea’s communist neighbour. North Korea’s nuclear weapons remain a threat, but the country needs the continued goodwill of China for food and military aid.

As well, the generals controlling the powerful military are unlikely to risk their favoured status in the nation of 23 million people by launching any serious attack on the south.

iShares MSCI South Korea Index Fund is a buy for aggressive investors.