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.
Your Portfolio vs. “The Market” – Comparing Apples to Fruit Salad
When you order fruit salad, you don’t expect it to taste like a single apple. If you’re invested in a diversified portfolio, it’s unrealistic to expect it to behave like Apple or even only U.S. stocks.
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
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?
We’ve created a quiz for you to see how much you know about investment diversification.
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.