Intelligence

Need experts on investment diversification

Reporter: Jeff Brown

Publication: U.S. News & World Report

Contact: iq@fullyvested.com

Deadline: Mar 28, 2017 12:00 pm

I’m looking for financial advisors and academics with insights into how best to diversify a portfolio. Is it right that many investors mistakenly think that simply owning a variety of funds means they are sufficiently diversified? Tell me your horror stories. How do you know whether two or more funds or ETFs are really diversified and not largely overlapping? Or, even if they do not overlap, how do you know that they really behave differently? What tools, like Morningstar Xray, do you use to evaluate diversification? What kind of diversification mistakes do you see most often? What are some examples of assets that appear diversified by actually move together? What changes in asset correlations have you seen over time? Is it reasonable to assume that different assets, like stocks, bonds, large caps and small, are actually uncorrelated? I’d like to see data on this — studies, analyses, academic papers…whatever. What is the simplest way a small investor using funds and ETFs, and aiming for long-term goals like retirement, can assure that holdings are adequately diversified? What else should I be asking? Requirements: I prefer responses by email containing usable content and quotes, the source’s contact info, full name, title, firm and location. (Please don’t omit location, as many websites are vague.)

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