Is Your Portfolio Well-Diversified?

During a market downturn, people often talk about the importance of diversification. 🌐 But how many stocks should you actually own to be truly diversified? 🤔 A prevailing statement is that you should plan to own 25 to 30 stocks if individual stocks are to make up the majority (50% or more) of the equity part of your portfolio. 💼 Owning at least 15 stocks helps avoid over-concentration in any single stock or sector. 📊

avatarJedi Jono
2025-03-10
Investing in ESG funds like the Vanguard ESG US Stock ETF (ESGV) can not only align your portfolio with your sustainable values but also offer potential financial benefits. As of early 2025, global ESG assets are projected to surpass **$50 trillion**, reflecting a significant shift toward sustainable investing. ESGV provides exposure to over **1,500 U.S. stocks** while excluding companies involved in industries such as fossil fuels and weapons, maintaining a competitive **0.09% expense ratio**. Research indicates that companies with strong ESG practices often exhibit lower risk and higher long-term profitability, enhancing portfolio stability. Performance-wise, ESGV has closely mirrored the S&P 500 Index. Over the past five years, ESGV achieved an annualized return of approximately **1