During a tumultuous time in the market, diversification helps keep the market and exchange traded funds (ETFs) working for investors instead of against them. What happens on Wall Street doesn’t necessasrily stay there in this day and age, with Europe, Asia and other markets correlated with U.S. stocks, says Jonathan Burton for The Wall Street Journal. The main thing investors should consider is how much of each asset do they want to utilize? Below are some ideas for diversifying an ETF portfolio:
- U.S. Stocks – asset classes and sectors
- Overseas developed and emerging-markets
- U.S. bonds
- International bonds
- U.S. REITs
- International REITs
- Narrowly-focused sectors
- Commodities
- Currencies
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.