Most of the investing that I do is outside my superannuation fund. That probably doesn't come as much of a surprise.
For one, I don't yet have enough funds in my account to make running a self-managed super fund (SMSF) economical.
For another, not withstanding the significant tax benefits of using super, I don't relish the idea of locking up too much of my capital away until I'm in my 60s.
Even so, my superannuation provider allows me to have some autonomy over the funds in my super.
Until now, my super has been a very simple affair. Roughly half of all incoming capital is directed into an ASX index fund. This ensures that a portion of my retirement income is flowing into the largest stocks on the ASX, including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Telstra Group Ltd (ASX: TLS).
The other half goes straight into an American index fund. This covers world-leading stocks like Apple, Microsoft, Alphabet, Amazon, Coca-Cola, Berkshire Hathaway and dozens of other household names.
For the past few years, I was very happy with his arrangement. It gives me access to some of the ASX's best companies, including the tax-advantaged franked dividends they provide. It also lets me diversify across geographies and currencies by holding those top-tier American companies, too.
However, I am currently rethinking this arrangement. I've come to the conclusion that a little bit more diversification might benefit my portfolio enormously.
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Using ASX ETFs to diversify my superannuation
Why? Well, like many investors, my faith in the United States of America is waning.
In my view, the country is woefully divided and riven with political toxicity. The current administration has made no bones about its disdain for the political conventions and norms upon which the country was founded.
Even worse, it is pursuing, in my opinion, an economically disastrous trade policy. Much has been made of the Trump Always Chickens Out (TACO) trade. However, President Trump seems intent on surrounding the United States with tariffs and other trade barriers. The administration seems intent on forcing the US to abandon its leading role in the global economy.
This has spooked many investors. Demand for US government bonds looks to be falling, as does faith and demand for US dollars.
A new federal government budget that dangerously increases US debt levels has done nothing to assuage these concerns.
As a result, I am no longer comfortable with half of my super going into US stocks.
Instead, I am looking to diversify my super.
I am considering employing three new ASX exchange-traded funds (ETFs) in this endeavour.
They are the iShares MSCI Japan ETF (ASX: IJP), the iShares MSCI South Korea ETF (ASX: IKO) and the iShares MSCI EAFE ETF (ASX: IVE).
Those first two names cover the Japanese and South Korean stock markets, respectively. IVE, meanwhile, is a fund that tracks markets in Europe and East Asia.
All of these economies house world-leading companies like Toyota, Nestle, Hyundai and Nintendo. They provide, in my view, some much-needed ballast against the precarious economic position of the United States in 2025.
Foolish takeaway
I'm hoping to incorporate at least one, if not two or three, of these ETFs in my superannuation fund in the near future. Warren Buffett once said that diversification is useful if you don't know what you're doing. It seems to me that the United States doesn't really know what it is doing right now. As such, I think some anti-US diversification is sorely needed.
