Diversifying down under: Australia and New Zealand are rare examples of dynamic, developed...

I RECENTLY TALKED TO A VETERAN U.S. broker who, it turns out, has been building exposure to Australia for several years -- to the point where it is now the largest holding in his portfolio.

His love affair with Australia is based on two considerations. First, it offers an entry to the Asia-Pacific region and, second, it represents a play on commodities.

In fact, Australia -- and neighboring New Zealand -- may be among the more attractive markets for investors looking to get full benefits of diversification. The EAFE (Europe, Australia and Far East) index dev