Single-country ETFs tap local gains from AI and commodities

Single-country exchange-traded funds have generated notable local returns as investors concentrate holdings in nation-specific stocks tied to particular industries. Concentrated funds have been used to target gains in markets led by technology, data center construction and commodity production.

Non-U.S. equities trade at a forward price-to-earnings ratio of about 14.0x versus 20.4x in the U.S., a roughly 31% gap that is wider than the 20-year average international discount near 20%.

South Korea and Taiwan have seen demand from global AI infrastructure lift revenues at major technology companies. The iShares MSCI South Korea ETF (EWY) has exposure to high-bandwidth memory producers including Samsung Electronics and SK Hynix. The iShares MSCI Taiwan ETF (EWT) is concentrated in foundry and semiconductor manufacturing, anchored by Taiwan Semiconductor Manufacturing Co., which supplies chips for AI workloads.

Franklin Templeton offers lower-cost single-country alternatives: the Franklin FTSE South Korea ETF (FLKR) has an expense ratio of 0.09% and the Franklin FTSE Taiwan ETF (FLTW) 0.19%, versus expense ratios of about 0.59% for the comparable iShares funds.

Thailand’s market includes companies supplying power management components used in electric vehicles and large-scale data centers. The iShares MSCI Thailand ETF (THD) lists Delta Electronics Thailand among its holdings. Data center construction has emerged alongside tourism, consumption and industry as a source of economic activity.

In Latin America, Peru’s stock exposure is concentrated in materials tied to copper and gold. The iShares MSCI Peru and Global Exposure ETF (EPU) held 25 names as of July 13, 2026 and focused on producers of those metals. The Global X MSCI Colombia ETF leans toward energy producers and includes banks and utilities that reflect the country’s resource and domestic-sector mix.

Western and Central European single-country funds show sector concentration by major firms. The iShares MSCI Netherlands ETF (EWN) had roughly a 26% weight in ASML as of July 13, 2026. The iShares MSCI Austria ETF (EWO) lists financials among about half of its top holdings.

A stronger U.S. dollar and higher U.S. interest rates coincided with rising corporate earnings outside the United States in the recent period. Broad international funds remain available for general overseas allocation while country-specific ETFs provide direct exposure to concentrated industry or commodity trends.