Search Results for: diversification

The S&P 500’s Lack of Diversification – S&P 5 vs. S&P 495 As this chart hightlights, the S&P 500 is less diversified than you think. Image: Lohman Econometrics

The Value of Diversification – 60/40 Portfolio vs. S&P 500 This chart shows the return and volatility of a 60/40 portfolio vs. S&P 500. Image: Fidelity Investments

Time, Diversification and the Volatility of Returns This chart shows how the volatility of returns decreases over time (range of equity, bond and blended total return). Picture Source: J.P. Morgan Asset Management

Valuation – PE10 Ratio USA vs. Rest of the World Investors looking for diversification and long-term growth might find emerging markets and non-U.S. developed markets to be more appealing alternatives to the U.S. stock market, given their current relative valuations. Image: Topdown Charts

S&P 500 Dividend Payers / Non-Payers Ratio Amidst 2025’s market volatility, dividend stocks emerge as a compelling investment, offering both steady income and growth potential while serving as a robust tool for portfolio diversification. Image: Ned Davis Research

YTD Equity Return vs. U.S. In 2025, the relative outperformance of international stocks compared to U.S. equities has underscored the benefits of diversification for investors so far. Image: Goldman Sachs Global Investment Research

U.S. Share of Global Equity Market The U.S. share of the global equity market has significantly increased. While this concentration has benefited investors with high U.S. exposure, it also raises concerns about proper diversification and exposure to other markets. Image: Goldman Sachs Global Investment Research

Valuation – U.S. Equities vs. Rest of World – 12-Month Forward PE Ratios Given the current high valuation of U.S. equities, diversification—both geographically and across sectors—remains a critical strategy for managing risk and maintaining portfolio stability. Image: Deutsche Bank

Top 10 Mega Cap Stocks as % of S&P 500 The increasing dominance of the top 10 companies in the S&P 500 Index has sparked significant concerns regarding the index’s ability to offer adequate diversification for investors. Image: Real Investment Advice

S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total The dominance of the top 10 U.S. companies in the S&P 500 Index raises concerns about the index’s ability to provide adequate diversification for investors. Image: Societe Generale Cross Asset Research

Market Capitalization of Six Largest Companies as Share of S&P 500 Total With the six largest companies accounting for 29% of the S&P 500’s total market capitalization, discussions about diversification have become increasingly relevant. A well-diversified portfolio is vital for effective risk management. Image: Goldman Sachs Global Investment Research