Fractional Shares Vs. ETFs: What's a Better Way to Diversify?
There's a reason investors are constantly urged to diversify their holdings. Maintaining a diverse investment mix could be your ticket to growing serious long-term wealth.
Just as importantly, you need a diverse portfolio to safeguard against losses. Imagine you load up on heavily on a single company whose share price plummets following a bad earnings report. That could cause your portfolio to take a serious hit. But if that company consists of just 5% of your total portfolio, the hit won't be as bad.
In fact, a diverse portfolio could be just the thing that helps you weather stock market turbulence -- something investors have been more than familiar with in recent weeks. But when it comes to diversifying, you have options.
Source Fool.com
