The buzz about the eye-tracking S4 from Samsung (Pink Sheets: SSNLF) is deafening, as is the speculation about whether this Korean tech giant will continue to hold back Apple (AAPL) with its innovative devices and growing consumer appeal.
The reasons to be bullish on Samsung are everywhere. But unfortunately, many investors get frustrated when they look into buying the stock in a typical brokerage account. It trades for around $1,450 currently and has a daily volume of around 100 shares. That’s not a typo — just 100.
Not very accessible, now is it?
Thankfully, there are alternatives out there for you tech traders looking to get in on Samsung. And no, I’m not talking Google (GOOG) to play the OS — I’m talking about overweight ETFs that are mostly made up of Samsung stock.
It’s admittedly not a direct play and most of these funds have significantly underperformed Samsung itself. But here are your options if you’re curious:
iShares MSCI South Korea Index Fund (EWY): This iShares fund is weighted in Samsung at just under 23% right now. There’s also a 5.3% stake in Hyundai— another Korean stock that is appealing to some investors but is logistically challenging to buy. As the name implies, this iShares ETF is focused on the nation of South Korea. Aside from the inherent risks of being an emerging market that is tough to research, South Korea is also next to (duh) North Korea, which just made a rather silly claim that it wants to nuke the U.S. That could obviously pose some issues. Year-to-date the EWY fund is off 7% vs. a 7% rise in Samsung stock.
iShares MSCI All Country Asia Information Technology Fund (AAIT): This ETF has 19% exposure to Samsung, and is a good alternative if you’re prefer to play the sector instead of the region. Top holdings after Samsung include big-name tech stocks like Taiwan Semiconductor (TSM) at 11% and Canon (CAJ) at 5%. AAIT is up a little more than 1% in 2013, again lagging the 7% rise in Samsung.