Even if your portfolio is concentrated in equities, for example, having diversification through a few ETFs that provide exposure to thousands of underlying stocks means you're less exposed to the ...

For example, here's how increasing an investor's allocation to fixed income can affect their portfolio's overall volatility and returns: Data source: Vanguard. Return data from 1926 to 2022.

Several studies have found that an optimal portfolio will include a 5% to 15% allocation to REITs. For example, a portfolio with 55% stocks, 35% bonds, and 10% REITs has historically outperformed ...

"For example, the often-cited '60/40' portfolio that invests 60% in equities and 40% in fixed income in an attempt to maximize the risk and return trade-off can trace its origins back to MPT." ...