How to Build a Diversified Portfolio with ETFs
📊 How to Build a Diversified Portfolio with ETFs Exchange-Traded Funds ( ETFs ) have become a cornerstone for long-term investors seeking diversification and stability. Unlike individual stocks, ETFs provide exposure to multiple assets within a single investment, reducing risk while maintaining growth potential. Image Credit: Pexels 📈 Why Diversification Matters Image Credit: Pexels Diversification is key to reducing risk and ensuring that no single stock or sector can negatively impact your entire portfolio. ETFs offer an easy way to achieve diversification by investing in various asset classes, including stocks, bonds, and commodities. 🔹 Key Benefits of ETFs in Diversification Lower Risk: Spreads investments across multiple assets. Cost Efficiency: Lower expense ratios compared to mutual funds. Market Exposure: Gain access to different sectors and global markets. Liquidity: Traded like stocks, making them easier to buy and sell. ✅ How to ...