Alternatives to the iShares Australia ETF, and How to Invest in New Zealand (EWA, CNZLX)

A reader asked about broad open-ended mutual funds (OEFs) to capture Australia and New Zealand, writes Roger Nusbaum. Here's the problem with OEFs:

If the manager likes Australia today but six months reduces Australia down to zero, you won't know about it in a timely manner and when you do find out you might need to make changes. So I'm not really on board with that idea but I concede there could be several funds that will always have some Aussie exposure. Given my lack of interest I have not researched this.

There is one OEF that I know of the invests in Australia and New Zealand , the Commonwealth Australia/New Zealand Fund (CNZLX). This fund has an excellent track record.

Related:

• ETFs and closed-end funds mentioned in this article (clicking on a link pulls up articles for the ETF in question): EWA.
• The complete list of funds (and links to articles about them) covered by ETF Investor.

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