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What is diversification?
Diversification is the principle that you should not put all your eggs in one basket. In investing terms, this means investing in many different companies, asset classes and sectors.
If you only invest in a single stock, you could make a lot if that stock rises, but you could also run the risk of losing a lot if it falls. You could also miss out on an even better opportunity in a different company.
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By investing in many different securities, you average out the specific risk that comes from each of them.
Similarly, a diversified portfolio will be made up of many different ETFs that behave differently in various market conditions. Ideally the losses in one portion of the portfolio can be offset by gains in a different area.
As ETFs can be used to invest in stocks, bonds, commodities and currencies, they make it easy to create a diversified portfolio that has the right amount of risk for you.
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About Trackinsight
Since our founding in 2016, we have been at the forefront of the industry, delivering accessible, comprehensive, and reliable tools to support the evolving needs of investors.
Over the past decade, Trackinsight has expanded its operations across six countries, serving thousands of professional investors. We’ve consistently innovated to provide cutting-edge solutions that meet the changing demands of the ETF market.
In 2024, Kepler Cheuvreux, a leading independent European financial services firm, acquired a majority stake in Trackinsight, becoming the company's principal shareholder.
This strategic partnership solidifies Trackinsight's position as a premier provider of ETF selection and analysis tools, while strengthening Kepler Cheuvreux’s commitment to becoming a leading player in the ETF sector.
Together, we are committed to offering advanced services that empower professional investors, advisors, institutions, and issuers. This new step enables us to deliver even more comprehensive and innovative technological solutions, driving ETF investing to new heights.
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