A useful toolkit provides multiple ways to tackle a task. Similarly, a diversified portfolio that holds a variety of assets\u2014stocks, bonds, cash, and more\u2014allows you to cope with volatile markets while keeping your money protected and growing.<\/p>\n
The value of portfolio diversification was demonstrated throughout 2025, as tariff announcements and government policy changes made investing feel uncertain.<\/p>\n
\u201cAs market trends shift<\/a>, investors should add resiliency to their portfolios. Diversification should be a core goal for investors amid this uncertainty,\u201c says Bryan Armour<\/a>, Morningstar\u2019s director of ETF and passive strategies research for North America. \u201cOne 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,\u201d he adds.<\/p>\n Below, explore the newest findings in portfolio diversification strategy from Morningstar\u2019s experts.<\/p>\n Diversification: Our Latest Insights and Analysis Investment Picks to Help You Diversify<\/p>\n Even when markets are calm, having a varied basket of investments can protect your portfolio and improve its performance.<\/p>\n \u201cA portfolio that includes assets with different performance characteristics often leads to better risk-adjusted returns than one that relies on a single asset class,\u201d explains Morningstar portfolio strategist<\/a> Amy Arnott<\/a>.<\/p>\n Below are some investing ideas that can add variety to your holdings.<\/p>\n Investing Ideas for Diversification Finding Diversifying Value in International Investing<\/p>\n