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.

Many investors like to use analogies from sports or the military to describe their investment approach, so they’ll often use the phrase playing the stock market.
ETF investing is one of the best financial innovations of our time but themed ETF investing—including the Dogs of the Dow — is a poor investing strategy
Aggressive and conservative investors alike must assess a range of the risks when they consider how much to invest in stocks for their investment portfolios
Exchange traded funds (ETFs), including Canadian ETFs, are set up to mirror the performance of a stock market index or subindex.
Some Canadian investors use currency hedging to protect against a future drop in the U.S. dollar. Consider the iShares Core S&P 500 ETF.
We’ve long advised Canadians own two or more of the Big Five bank stocks—Scotiabank, BMOl, CIBC, TD and RBC—because of their dividends
There are several savings and investment options that stand out above any others when you are selecting the best investments for children.
Qualities of the best ETFs, including diversification among top-quality stocks, so you can hold the best ETFs for your TFSA investing success
Corporate-class mutual funds let you switch between funds without having to pay capital gains taxes right away.
The U.S. – Canada exchange rate does influence your gains (or losses). Here’s why that doesn’t matter. Keep reading for more.