Emerging country/market investments

Emerging country/market investments

		Closed-end country funds	Direct investing
Immediate diversification within the subject country		Yes	No
More volatile?		Yes (*1)	No
Strongly correlated to the U.S. stock market?		Yes	No

(*1) more volatile than their underlying assets due to the added volatility induced by the fund premium to net asset value

Buying country funds is NOT always a better choice than direct investment for most emerging markets. (e.g. higher volatility by fund premium)