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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.

Featured Articles

How Much Crypto Should I Own?

What’s the right amount to keep in a portfolio? If investors want to dip their toes into crypto, we recommend aiming for this allocation.

Assessing a Portfolio’s Diversification

Guidance on diversification to help you make portfolio changes, knowing the potential impact to the future performance of your investments.

What A Trip To The Casino Can Teach You About Investing And Risk

Learn the ins and outs of how gambling works from a quantitative investor, and use it to your advantage in investing for the long term.

Recent Articles

Why Only “Buying Local” When Investing Is Risky

Currently, U.S. investors may be asking themselves why they should be investing outside of their home country when their own stock market is doing so well. Just a few decades ago, U.S. investors were asking themselves the opposite question.

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.

Understanding Betterment’s Portfolio Strategy

Here at Betterment, we invest in low-cost, globally diversified funds. Learn more about what we invest in and what it means for your portfolio.

Understanding Our Flexible Portfolios

Learn how advanced investors can take more control over their portfolio by modifying the weightings of individual asset classes.

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.

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.

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.