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.

“Alternative investments” is the collective name for a diverse group of assets that do not fall into one of the traditional asset classes of stocks or bonds. Alternative assets can include real estate, private equity investments, commodities, infrastructure, hedge funds, collectibles, and even art and wine.


One of the main selling points alternative investment providers use is their belief they provide valuable diversification and at the same time offer the potential for increased returns.


Alternative assets have a low correlation with the traditional asset classes....
Here are two ETFs that emphasize value investing in their stock selection. Academic studies suggest that, on average, value stocks can produce better results than growth investing. Still, it’s important to look closely to see if they’re truly undervalued. They may, after all, only be cheap due to hidden problems.


At the same time, we think you benefit most from a balance of high-quality value stocks and growth stocks....
GOODYEAR TIRE & RUBBER CO. $23.69 (Nasdaq symbol GT; TSINetwork Rating: Average) (330-796-2122; www.goodyear.com; Shares o/s: 237.0 million; Market cap: $5.9 billion; Dividend yield: 2.4%) is one of the world’s largest tire makers....
While call options produce income for First Asset Tech Giants Covered Call ETF, hedging costs and fluctuations in the U.S. dollar are a concern for Canadian investors.
The best ETF selection strategies will focus on well-diversified funds holding top-quality stocks
A: Fairfax Financial Holdings, $701.00, symbol FFH on Toronto (Shares outstanding: 27.8 million; Market cap: $21.1 billion; www.fairfax.ca), mainly sells insurance and reinsurance, but it also manages a large investment portfolio....
We think foreign stocks can safely make up 10% of a conservative investor’s portfolio. One way is through the selection of exchange-traded funds (ETFs) with an overseas focus.


The best of those ETFs continue to offer very low management fees and 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 INDEX FUND $44.46 (New York symbol EEM; buy or sell through brokers) is designed to track the MSCI Emerging Markets Index.


The fund’s geographic breakdown is as follows: China, 31.4%; South Korea, 14.0%; Taiwan, 11.7%; India, 8.8%; South Africa, 6.6%; Brazil, 6.5%; Russia, 3.4%; Mexico, 3.1%; Malaysia, 2.4%; Thailand, 2.3%; Indonesia, 1.9%; and Poland, 1.2%.


Its top stocks are Tencent Holdings (China: Internet), 5.0%; Alibaba Group (China: e-commerce), 4.1 %; Samsung Electronics (South Korea), 3.8%; Taiwan Semiconductor (computer chips), 3.7%; Naspers (South Africa: media and Internet), 2.1%; China Construction Bank, 1.6%; Baidu (China: Internet), 1.3%; Industrial & Commercial Bank of China, 1.0%; China Mobile, 1.0%; and Ping An Insurance Group (China), 0.9%.


iShares launched the ETF on April 7, 2003....
If you want to make the best energy stock investments, you should to read this advice
The Best Stock Analysts rely on a diverse range of investment criteria in their decision making—including diversification and with an emphasis on dividend-paying stocks
Many emerging markets have dropped lately. That’s because a growing U.S. economy and rising interest rates have pushed up the U.S. dollar. That typically results in capital flowing to the U.S. from emerging markets and pushing down investment in those economies....