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.

Test your understanding as a dividend investor. Canada, for example, gives its residents extra value from their dividend-paying investments. Test your knowledge now on this and other key points.
Investing in the most popular stocks today will most likely hurt your long-run portfolio returns. Here’s why.
TELUS $46.80, is a buy. The company (Toronto symbol T; Shares outstanding: 601.0 million; Market cap: $28.2 billion; TSINetwork Rating: Above Average; Dividend yield: 4.8%; www.telus.com) continues to expand its range of services to diversify as well as cross-sell to its existing customers.


Telus sees the diversification of its offerings as a way of protecting and building investor value....
We think foreign stocks can safely make up 10% of a conservative investor’s portfolio. One way is through exchange-traded funds (ETFs) with an overseas focus.


The best of those ETFs charge you very low management fees yet offer you well-diversified, tax-efficient portfolios of high-quality stocks.


Here’s a look at four international ETFs we see as suitable for new buying and two others we feel you should continue to hold.


ISHARES MSCI EMERGING MARKETS ETF, $42.92, is a buy for aggressive investors. The fund (New York symbol EEM; buy or sell through brokers) is designed to track the MSCI Emerging Markets Index; it gives investors access to some of the world’s fastest growing markets....
Integrate dividend growth stock investing into your portfolio strategy and you’ll expand your odds of investment success
Canadian bank ETFs can provide an attractive mix of safety, income and growth for investors. As well, top Canadian bank stocks are well known for their financial stability in the face of economic downturns.
Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects.
7 Secrets to Unlocking Value Stocks, our free report, gives you the keys to value investing, including how to discover the hidden value that can unlock explosive growth.
Avoid a strict value company vs growth company strategy and instead focus on high-quality examples of each investment type for the biggest portfolio gains
Employ a top-notch investment portfolio diversification strategy that employs a range of tactics