diversification Archives | Wealthfront Blog Personal Finance & Investing Insights Thu, 09 May 2024 20:11:09 +0000 en-US hourly 1 https://www.wealthfront.com/blog/wp-content/uploads/2019/09/cropped-wave-logo-transparent-hi-res-500x500.png diversification Archives | Wealthfront Blog 32 32 How and Why to Diversify Your Portfolio https://www.wealthfront.com/blog/what-is-diversification/ Thu, 09 May 2024 17:58:54 +0000 https://www.wealthfront.com/blog/?p=13542 Diversification is the practice of buying a variety of different investments with the goal of balancing risk and reward in your portfolio. A well-diversified portfolio can help you maximize your expected returns without taking on unnecessary or unwanted risk. This is known as improving your “risk-adjusted returns.” You can think of diversification as a way […]

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]]> Sound Investing When Markets Are in Turmoil https://www.wealthfront.com/blog/sound-investing-when-markets-are-in-turmoil-2/ Mon, 26 Aug 2019 22:08:53 +0000 //wealthfront.x5view.co/?p=9442 What should you do when market volatility has you doubting your investment strategy? No worries — Wealthfront Chief Investment Officer Burt Malkiel has clear advice.

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]]> Sound Investing When Markets Are in Turmoil https://www.wealthfront.com/blog/sound-investing-when-markets-are-in-turmoil/ Thu, 29 Nov 2018 19:12:53 +0000 http://www.wealthfront.com/blog/?p=9442 What should you do when market volatility has you doubting your investment strategy? No worries — Wealthfront Chief Investment Officer Burt Malkiel has clear advice.

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]]> Global Diversification: Why You Should Invest in Foreign and Emerging Markets https://www.wealthfront.com/blog/global-diversification-invest-foreign-emerging-markets/ Thu, 30 Aug 2018 14:00:55 +0000 http://www.wealthfront.com/blog/?p=9130 Investing in global markets actually makes investing less risky and uncertain because no one can accurately predict which asset classes will perform the best at any given time. In this post, we’ll talk about getting over the “home bias” hump so you can take advantage of foreign and emerging markets.

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]]> Choosing The One https://www.wealthfront.com/blog/choosing-one/ Wed, 05 Jul 2017 19:50:36 +0000 http://www.wealthfront.com/blog/?p=7664 When it comes to automated financial advisors, people often invest in more than one. While reasons vary, they typically diversify across automated advisors with the intention of mitigating risk. But there’s actually no real benefit in choosing more than one. So today we’ll highlight a few key things to know if you’re currently investing or […]

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]]> Why Diversify a Concentrated Portfolio? https://www.wealthfront.com/blog/diversify-concentrated-portfolio/ Thu, 05 Jan 2017 16:57:55 +0000 http://www.wealthfront.com/blog/?p=7162 If you work for a successful company, chances are a significant share of your wealth is tied up in your employer’s equity. This likely makes you wonder if you are better served diversifying out of your concentrated position. In this post, we use Modern Portfolio Theory to show why your employer’s stock has to have […]

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]]> What Should the Investor Do About The Bond Market? https://www.wealthfront.com/blog/investor-bond-market/ Wed, 06 Apr 2016 16:50:07 +0000 http://www.wealthfront.com/blog/?p=5503 Professional investment advisors as well as academic financial economists have traditionally advised investors to hold widely diversified portfolios. Indeed diversification has often been called “the only free lunch” available to investors. Broad diversification is recommended to provide investors with a reasonably secure rate of return while containing portfolio risk. Diversified portfolios have normally included some […]

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]]> Important Lessons for New Investors https://www.wealthfront.com/blog/advice-for-new-investors/ Wed, 20 Jan 2016 19:00:49 +0000 http://www.wealthfront.com/blog/?p=5419 Wealthfront has grown rapidly by bringing the benefits of sophisticated investment management to a huge new generation of investors. For many of our clients, investing with Wealthfront is their first direct exposure to the stock and bond markets, and unlike savings accounts, stock and bond markets can rise and fall. For new investors, reviewing your […]

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]]> Are You Invested the Right Way for 2016? https://www.wealthfront.com/blog/invested-the-right-way-2016/ Thu, 10 Dec 2015 00:50:52 +0000 http://www.wealthfront.com/blog/?p=5335 As we draw to the close of another year, it’s common for investors to ask themselves, “am I invested the right way for the long term?” Unfortunately, too often we lack access to the data that could help answer that question. Fortunately, Wealthfront is in a unique position. We have seen what thousands of people’s […]

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]]> Why You Shouldn’t Just Invest in the S&P 500 https://www.wealthfront.com/blog/why-you-shouldnt-just-invest-in-sp-500/ Tue, 25 Nov 2014 15:53:57 +0000 http://www.wealthfront.com/blog/?p=4862 Diversification matters. Diversification is the key to long-term investment success because it can insulate you, to some extent, from losses. If you feel insulated, you are more likely to stay invested and keep investing through market volatility. Being properly diversified also enables the actions that help you during market corrections: rebalancing and tax-loss harvesting. Investors […]

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