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.

Learn how currency fluctuations affect Canadian investors buying U.S. stocks. Discover why you don’t need to wait for favorable exchange rates to realize gains, plus strategies for managing currency risk in your portfolio.
A: General Dynamics Corp., $280.78, symbol GD on New York (Shares outstanding: 268.4 million; Market cap: $75.8 billion; www.gd.com), is a global aerospace and defense company.

General Dynamics offers a broad portfolio of products and services in business aviation; ship construction and repair; land vehicles, weapons systems, and munitions; and technology products and services.

The company’s main customer is the U.S....
Restaurant Brands Int’l Inc. offers a solid 3.7% yield while its growth prospects remain sound, especially internationally.
To determine when to buy an ETF, some investors use technical analysis and other tools. But you need to dig deeper.
Within the five economic sectors, should you also spread out funds over some percentage of value, growth, and small stocks?
Linde plc grew earnings while continuing a 32-year dividend-increase streak as the firm sells into resilient markets.
The advantages of diversified portfolio holdings include a balance of sectors and risk levels, regardless of your investing temperament
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A: BMO International Dividend ETF, $26.20, symbol ZDI on Toronto (Units outstanding: 24.4 million; Market cap: $639.7 million; www.bmoetfs.ca), offers a portfolio of high-yield dividend-payers from developed markets....
Over the last few months, Inner Circle members have wondered about the need for portfolio diversification outside of North America. Our first question below is a prime example.

As part of our three-part Successful Investor strategy, we continue to recommend that you spread your money out across most if not all of the five main economic sectors—Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities.

However, we feel North American listed stocks can give you the diversity you want, and provide better long-term returns....