A useful toolkit provides multiple ways to tackle a task. Similarly, a diversified portfolio that holds a variety of assets—stocks, bonds, cash, and more—allows you to cope with volatile markets while keeping your money protected and growing.

The value of portfolio diversification was demonstrated throughout 2025, as tariff announcements and government policy changes made investing feel uncertain.

“As market trends shift, investors should add resiliency to their portfolios. Diversification should be a core goal for investors amid this uncertainty,“ says Bryan Armour, Morningstar’s director of ETF and passive strategies research for North America. “One company, one sector, one currency, or one region could find itself worse off in a new world order, so now is a great time to put some eggs in other baskets,” he adds.

Below, explore the newest findings in portfolio diversification strategy from Morningstar’s experts.

Diversification: Our Latest Insights and Analysis Investment Picks to Help You Diversify

Even when markets are calm, having a varied basket of investments can protect your portfolio and improve its performance.

“A portfolio that includes assets with different performance characteristics often leads to better risk-adjusted returns than one that relies on a single asset class,” explains Morningstar portfolio strategist Amy Arnott.

Below are some investing ideas that can add variety to your holdings.

Investing Ideas for Diversification Finding Diversifying Value in International Investing

When markets at home are bumpy, international investments and foreign-currency exposure can start to look appealing. “International stocks have two main advantages: diversification and the potential to perform better than US stocks over certain periods,” says Arnott.

Below, some tips and points to remember when investing in foreign markets.

Diversifying With International Investments Building a Diversified Portfolio

Portfolio diversifications means more than just collecting a variety of assets. The approach that’s right for you will depend on factors like your goals, time horizon, and risk tolerance.

Morningstar’s research can help you find the right assets and investing style, so you can build a portfolio to handle any market condition.

Building Your Portfolio