Contrary to popular belief, achieving diversification in investing goes beyond simply not “putting all your eggs in one basket.” Owning shares in multiple companies doesn’t necessarily mean an investor’s portfolio is diversified.
For real diversification, a broader approach is essential – one that spans various asset classes including bonds, cash, commodities, precious metals and even alternative investments.
Basically, a diversified portfolio can be thought of as a well-equipped boat, designed with various features to navigate through different types of storms – stocks to propel growth during bull markets, bonds to provide stability through economic downturns, commodities to hedge against inflation and cash to offer security when all else is uncertain.
Here are 10 exchange-traded funds (ETFs) investors can buy to build a diversified portfolio.
This post originally appeared at U.S. News & World Report.