Korea, Japan and Taiwan ETFs Surge as Second-Half Strategy Turns Defensive
Asia country ETFs delivered sharply different gains in the first half of 2026. As of June 25 NAV total return, the Korea ETF led with 108.98%, followed by Taiwan at 66.16% and Japan at 15.76%. The second-half test is valuation, currency, policy and semiconductor concentration risk.
Korea, Taiwan and Japan country ETFs enter the second half with strong momentum, but the trade has moved from discovery to risk control. As of June 25, NAV total return was 108.98% for iShares MSCI South Korea ETF, 66.16% for iShares MSCI Taiwan ETF and 15.76% for iShares MSCI Japan ETF. On June 26 their closing prices were $197.28, $102.81 and $92.80.
Semiconductors Led Returns
Korea and Taiwan rallied on AI servers, memory pricing and chip orders. Technology weights are 57.47% in the Korea ETF and 75.12% in the Taiwan ETF, while Japan is broader: industrials 22.81%, technology 22.50% and financials 17.24%. That makes Korea and Taiwan more exposed to earnings revisions; Japan is more tied to the yen, manufacturing and shareholder returns.
Second-Half Playbook
For Korean investors, dollar returns must be translated into won returns, and tax treatment differs between direct overseas ETFs and Korea-listed overseas ETFs. The main variables are Fed cuts, Bank of Japan tightening, FX, U.S.-China tech rules and chip guidance. New money should use staged entries; existing holders should rebalance excess country exposure rather than chase past performance.
Key points
- Asia country ETFs delivered sharply different gains in the first half of 2026. As of June 25 NAV total return, the Korea ETF led with 108.98%, followed by Taiwan at 66.16% and Japan at 15.76%. The second-half test is valuation, currency, policy and semiconductor concentration risk.
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FAQ
Which ETF has led among Korea, Japan and Taiwan this year?
As of June 25 NAV total return, the representative Korea ETF led at 108.98%, followed by Taiwan at 66.16% and Japan at 15.76%.
What are the biggest second-half variables?
Fed rate cuts, Bank of Japan tightening, won-yen-Taiwan dollar moves, U.S.-China tech rules and semiconductor earnings guidance are the key variables.
What should Korean investors check first?
They should convert dollar returns into won returns and compare tax, account eligibility and currency-hedging features across overseas and Korea-listed ETFs.
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