Morningstar’s Guide to Portfolio Diversification
A useful toolkit provides multiple ways to tackle a task. Similarly, a diversified portfolio that holds a variety of assets—stocks, bonds, cash, and more—allows you to cope with volatile markets while keeping your money protected and growing.
The value of portfolio diversification was demonstrated throughout 2025, as tariff announcements and government policy changes made investing feel uncertain.
“As market trends shift, investors should add resiliency to their portfolios. Diversification should be a core goal for investors amid this uncertainty,” says Bryan Armour, Morningstar’s director of exchange-traded funds and passive strategies research for North America. “One company, one sector, one currency, or one region could find…
