#portfolio-diversification

#portfolio-diversification

The Value ETF tracks the CRSP US Large Cap Value Index, focusing on large-capitalization value stocks. It holds positions in a diversified set of companies, with recent data indicating around 312 stocks in total. Rather than the large tech stocks found propping up the portfolios of other ETFs, such as the Vanguard S&P 500 ETF or the Vanguard Total Stock Market ETF, its largest positions emphasize traditional value sectors rather than high-growth momentum.

The Schwab US Dividend Equity ETF (SCHD) is an exchange-traded fund managed by the professionals at the Schwab Asset Management team. It invests in a basket of individual stocks and tracks the Dow Jones U.S. Dividend 100 Index. This index tracks the returns of high-yielding dividend stocks that show a consistent record of payments and are fundamentally strong.

While most active ETFs fail to keep up with indices, that's not true about every actively managed fund. It turns out there are a few active ETFs that have outperformed the S&P 500 in recent years. Adding these picks to your portfolio can provide additional diversification and possibly boost your returns.

SPDR S&P Pharmaceuticals ETF (NYSEARCA:XPH) exists to solve a specific problem: how do you gain broad exposure to pharmaceutical companies without the concentration risk of the largest healthcare names dominating your returns? XPH holds 57 positions with relatively even weighting-no single stock exceeds 2.12% of the portfolio. That structure delivers pure-play pharma exposure spanning large-cap stalwarts like Eli Lilly and Company () and Merck & Co. (), mid-cap specialty pharmaceutical companies, and smaller biotech names focused on niche therapeutics.

The SPDR NYSE Technology ETF (NYSEARCA:XNTK) offers something most tech ETFs don't: equal-weighted exposure to the full technology spectrum. While mega-cap funds like QQQ concentrate 40% of assets in five stocks, XNTK spreads risk across 68.4% technology holdings with its largest position capped at 4.50%. This structure appeals to investors who want broad tech participation without betting their portfolio on a handful of trillion-dollar names.

Vanguard High Dividend Yield Index Fund ETF Shares (NYSEARCA:VYM) generates income by holding a diversified portfolio of dividend-paying U.S. stocks and passing those dividends directly to shareholders. With $88.5 billion in assets and an ultra-low 0.06% expense ratio, VYM offers cost-efficient exposure to companies that consistently return cash to investors. The fund currently yields 2.45%, slightly above the S&P 500's typical yield, while maintaining a 19-year uninterrupted payment history since its November 10, 2006 inception.

The lack of appetite for UK smaller companies and an "on-again, off-again" approach to tax reform has been a toxic combination for AIM. Hargeave Hale, like most AIM VCTs, hasn't escaped the damage, losing investors 39.5% over five years. The big question for VCT investors though is not what's gone before, but what the future holds. The decline in AIM valuations has left the VCT with an exceptionally well diversified, and by VCT standards remarkably low risk, portfolio.

Most U.S. investors never look beyond domestic stocks for dividend income, and the reasoning, at least on the surface, seems logical. Given currency risk, unfamiliar names, differing accounting standards, and the perception that international markets are riskier and/or less transparent, this lack of consideration seems reasonable. However, as a result of this same consideration, this bias ultimately leaves money on the table, and while US dividend stocks infrequently reach 4-5% yields without serious risk, international markets offer established companies with sustainable business models

The S&P 500 has a concentration problem. At the start of 2026, the top seven stocks account for roughly a third of the market-cap weighted index, leaving investors heavily exposed to a handful of mega-cap technology companies. Invesco S&P 100 Equal Weight ETF ( NYSEARCA:EQWL) offers a different approach: it takes the 100 largest companies in the S&P 500 and gives each equal weight, capping even giants like Apple Inc. ( NASDAQ:AAPL) and Microsoft Corporation ( NASDAQ:MSFT) at roughly 1% of the portfolio.

Yahoo Finance Ai is positioned as a specialized online platform designed to simplify access to global financial markets through connected brokerage services. Rather than acting as a broker itself, the platform functions as a technological gateway, combining automation, analytics, and educational tools to help users navigate assets such as cryptocurrencies, Forex, CFDs, stocks, and commodities. At its core, Yahoo Finance Ai follows a broader industry trend: lowering the entry barrier to trading by using intelligent software and centralized dashboards.

If you haven't thought about diversifying your equity portfolio internationally, perhaps the performance of non-U.S. financial markets might have you looking beyond the S&P 500 for your next big investment. Undoubtedly, the S&P has done just fine, now up over 15%, with a potential move to the 7,000 level in sight if investors can shrug off recent concerns that have made for a rather rocky ride in this fourth and final quarter of 2025.

We see little reason for concern around Meta's stock given the company's exceptionally strong operating performance, robust financial health, and continued leadership in digital advertising. Meta's transformation into an AI-driven advertising powerhouse-anchored by Instagram's growing dominance and massive infrastructure investments-underpins our confidence. Overall, while the stock trades at a premium valuation, we view it as fairly priced given its strength and momentum.

When President Trump returned to the White House his intention was clear: Make America Great Again. But the United States's economic partners, and some of its rivals, are also benefitting from having the unorthodox showman back in the Oval Office. Investors are watching the U.S. stock market with both enthusiasm and trepidation: The S&P 500 is up 15% over the past year, Treasuries have remained relatively steady, and the Fed's monetary policy is expected to begin a downwards trajectory.

Diversifying your portfolio with luxury assets can add glamour and enhance overall value, but thorough research is essential to understand the risks involved.

The stock market-driven volatility has led investors towards exchange-traded funds (ETFs) as long-term investors seek low-risk options that can generate impressive returns.

The JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) has become a top choice for many investors. It is a covered call ETF that offers an attractive yield over 10%, much higher than the S&P 500's 1.5%. The ETF invests in low-volatility stocks and manages to pay a higher yield through the options call. It outperforms the traditional equity income approach and has a low expense ratio of 0.35%.