Free for 90 days: Sign up now and get 90 days managed free after your first deposit. See offer details

Diversification

Diversification in a portfolio helps you mitigate risk while pursuing returns, creating a smoother ride toward long-term performance. Understand diversification, and you'll understand what makes for a solid investment strategy.

Diversification: Winning the War by Losing Battles

Diversification: Winning the War by Losing Battles

Diversification involves knowingly accepting some individual losses in order to gain long-term returns.

4 Myths About Diversification

4 Myths About Diversification

What is diversification? Many investors know that they should be diversified, but don’t understand what that really means. Here, we break it down for you—along with four big misconceptions about being diversified.

Quiz: Do You Understand Diversification?

Quiz: Do You Understand Diversification?

We’ve created a quiz for you to see how much you know about investment diversification.

Recent Articles

Bond Funds: How to Use Diversification to Minimize Risks

It’s hard for individual investors to trade bonds profitably, as there is little standardization, there are no public exchanges, and the market can be opaque.

Why You Should Invest Beyond U.S. Stocks

Your Betterment portfolio is internationally diversified. Here are three reasons why that’s essential for managing risk over time.

Where in the World Are You Invested?

Betterment's portfolio diversification includes holdings across 102 countries. Explore where your money is invested with our widget.

Diversification and Performance: Two Portfolios

The Betterment portfolio has historically outperformed a DIY benchmark portfolio by as much as 1.8%. Take a look.

Seeking the Other Kind of Alpha: Diversification

You know there's value in intelligent asset allocation, but are you getting the full benefit of true diversification?

Five Reasons Diversification Is Trickier Than You Think

Like picking dinner from a large buffet, in picking funds we tend to take one of everything that is offered -- rather the right amount of just a few things.

The Right Kind of Portfolio Diversification

The more active funds there are in a portfolio, the greater the chances of underperformance.

Diversification Explained

Diversifying your assets means not “putting all your eggs in one basket,” and asset allocation is the practice of achieving the balance between risk and reward.

Search our site

For more information and disclosures about the Betterment Resource Center, click here. | See our contributors.