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Asset protection: High concentration on a few companies in ETFs - How to diversify correctly
Unrecognized risks in the portfolio: High concentration on MSCI World can jeopardize your strategy. Learn how to protect your assets and find the best complement ETFs. Protect your portfolio now!
Asset protection: High concentration on a few companies in ETFs - How to diversify correctly
In many portfolios, a high concentration on just a few companies can be observed, even if investors rely on the MSCI World. This phenomenon often goes unnoticed, but carries some risk, as has been demonstrated in the past. Historical examples illustrate the danger of focusing too much on individual companies within the MSCI World Index, which can jeopardize the diversification of the portfolio.
In order to protect your own assets, it is advisable to dissolve the existing concentration and diversify the portfolio with additional ETFs. This can reduce the risk of overexposure to individual companies. Wider portfolio diversification can help limit potential losses and achieve more stable performance over time.
It is important to realize that too much concentration on a few companies within the MSCI World Index can lead to increased risk. Sticking to this strategy without sufficient diversification could put your assets at risk in the long term. It is therefore advisable to take timely measures to protect the portfolio and invest more successfully in the long term.