There are many exchange-traded funds (ETFs) on the ASX whose price units could be described as 'crazy' over 2026 to date. But perhaps none can rival the iShares MSCI South Korea ETF (ASX: IKO).
Some readers may recall our discussion of IKO's eye-popping performance about two months ago. Back then, we discussed this ASX ETF's astonishing, almost unbelievable 220% gain over 12 months.
Well, things look a little different today. Let's break it down.
So the iShares South Korea ETF indeed enjoyed one of the most impressive 12-month returns of any index fund the ASX has ever seen. That 200% rise was driven by just two stocks. Two stocks that dominate the South Korean markets and essentially make or break this IKO ETF. The S&P/ASX 200 Index (ASX: XJO) has long been regarded as 'top-heavy' with BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA)'s 10% weightings. But by comparison, you'll be shocked to hear that SK Hynix Inc and Samsung Electronics Ltd make up a whopping 21.7% and 22.5% of the IKO portfolio, respectively. That's right, just two stocks represent almost half of the entire Korean stock market by weighted market capitalisation at the moment.
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IKO: The ASX's craziest ETF?
The success of these two stocks can arguably be put down to their importance in the global chip sector. Both Samsung and SK Hynix are leading semiconductor manufacturers and have grown enormously in importance in the midst of the AI boom.
To illustrate, Samsung stock, already a massive company, rocketed 500% between June 2025 and June 2026. SK Hynix has done even better, rocketing more than 1,000% over the same period. So no wonder we saw such a dramatic concurrent runup in the iShares South Korea ETF.
But of course, it hasn't been all sunshine and roses more recently. The last couple of months have seen both Samsung and SK Hynix, and, by extension, the South Korean market, decisively come off the boil. Between 22 June and 40 July, Hynix stock crashed a nasty 54%. Samsung stock lost about 41% over that same window. Both companies have bounced off their late-July lows. However, both remain down significantly from their late June highs. Overall, the IKO ETF is, today, down by almost 30% compared to where it was in late June.
Saying that, the iShares South Korea ETF remains up 45.35% in 2026 to date. And up 99.7% since this time last year. So things could be worse for long-term investors. But the last six weeks or so have been brutal for investors all the same.
So who knows what the next move for the ASX's craziest ETF might be. At this point, one would be forgiven for thinking anything is possible.
