For those readers who embrace my CORE and EXPLORE approach (this is actually my version of John Bogle’s approach) with respect to Asset Allocation, you can see why I suggest considering country funds for a small percentage of your EXPLORE portfolio. Country funds fulfill the cardinal rule of diversification as their correlations to the USA markets are much lower. Over the past 30 years, the world’s top performing market has come from this group 100% of the time (outside the USA).
I personally believe that actively trading a few focused equities in one’s country fund global asset basket can provide the equity growth you seek and can improve your skill in investing in less volatile asset classes within your portfolio. Make no mistake about what I’m saying. This asset class is for active traders who have the discipline to keep a close eye on these volatile equities, with the additional caveat that it should represent only a small percentage of your total EXPLORE portfolio.