Vanguard Health Care ETF
Another way investors can reduce risk in their stock portfolios is by cutting back exposure to small-cap companies, which tend to be more volatile and “appear to be fairly expensive relative to larger companies.” [For Stocks, Smaller Was Better the Past Decade.]
Koesterich said stocks have been resilient this year “but several factors— including the pending completion of the QE2 asset purchase program and the onset of late spring/summer, a perennially weak season for equities— will bring increased risk to the markets going forward.”