diversification

What is diversification?


Diversification involves the planned distribution of investments across various securities to minimize the risk exposure to a specific industry or geographic segment. However, the risk of over-diversification exists, in which an investor can at best expect to mirror the market returns, minus any brokerage fees or management expenses.

Investment forecasting—especially when part of a sales pitch—is just one example of how conflicts of interest can hurt you
One key factor in successful investing—apart from picking good stocks (or ETFs that invest in those stocks)—is to diversify your portfolio.


Our main suggestion would be to make sure that your holdings are always well-balanced among most if not all of the five economic sectors—Manufacturing, Consumer, Utilities, Resources and Finance....
We think that most Canadian investors should have high-quality, dividend-paying Canadian stocks (or ETFs that hold those stocks) make up the bulk of their portfolios. We also feel that virtually all Canadian investors should have, say, 20% to 30% of their portfolios in U.S....
All of the major global stock markets fell in the wake of COVID-19’s spread. But many top markets have since rebounded. We think the outlook remains positive for quality stocks, and one way to profit, while cutting your risk, is to invest in quality ETFs.


Here’s a look at four international funds that we believe are well-suited for your new buying....
Use the bottom-up investment approach to pick the best stocks for your portfolio and maximize your wealth-building over time
We think investors using a bottom-up investment approach will realize higher long-term portfolio returns. Here’s why.
Diversification is a key way to reduce portfolio risk and volatility, but there are other strategies aimed at cutting portfolio risk and volatility. Those other methods include moving investments into risky assets at regular intervals and buying stocks gradually over time....
Diversification is a key part of our approach to successful investing. Done right, it can help investors cut the overall risk of their portfolios. Here’s a look at two different approaches: one ETF holds bonds in addition to stocks; the other invests globally in real estate stocks.


Still, our approach to portfolio diversification generally takes a broader view....
Blue chip companies with a history of paying dividends will be among your most profitable stocks
Ensuring your stock picks have a history of dividend payments is one of the best ways to invest money for conservative investors looking for safer investments