{"id":196773,"date":"2023-09-27T09:45:00","date_gmt":"2023-09-27T13:45:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=196773"},"modified":"2023-09-27T12:29:20","modified_gmt":"2023-09-27T16:29:20","slug":"the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/contributor-podcasts\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\/","title":{"rendered":"The Many Sides of Diversification: Spreading Your Bets Across Stocks, Factors and Asset Classes"},"content":{"rendered":"\n<p>The idea of diversification is simple. Most investors understand that spreading your bets and avoiding overconcentration is a good idea. But the details behind how to do that can be much more complicated. In this episode, we take a deep dive into diversification. We look at the number of stocks a portfolio needs to be diversified, the importance of factor diversification, whether a portfolio with only stocks and bonds can be considered properly diversified and why rebalancing is an essential part of diversification.<\/p>\n\n\n\n<p><a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/the-education-of-a-financial-planner\/id1670513515\" target=\"_blank\" rel=\"noreferrer noopener\">Listen on Apple<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/open.spotify.com\/show\/1gq3okDGRwCha1vgdCFlbQ\" target=\"_blank\" rel=\"noreferrer noopener\">Listen on Spotify<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q\" target=\"_blank\" rel=\"noreferrer noopener\">Watch on YouTube<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=55s\" target=\"_blank\" rel=\"noreferrer noopener\">00:55<\/a>&nbsp;\u2013 The different ways to look at diversification<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=184s\" target=\"_blank\" rel=\"noreferrer noopener\">03:04<\/a>&nbsp;\u2013 How many stocks do you need to be diversified?<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=301s\" target=\"_blank\" rel=\"noreferrer noopener\">05:01<\/a>&nbsp;\u2013 Systematic vs. idiosyncratic risk<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=443s\" target=\"_blank\" rel=\"noreferrer noopener\">07:23<\/a>&nbsp;\u2013 The linkage between behavior and diversification<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=643s\" target=\"_blank\" rel=\"noreferrer noopener\">10:43<\/a>&nbsp;\u2013 The importance of factor diversification<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=1209s\" target=\"_blank\" rel=\"noreferrer noopener\">20:09<\/a>&nbsp;\u2013 ESG and the importance of understanding what drives stock returns<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=1493s\" target=\"_blank\" rel=\"noreferrer noopener\">24:53<\/a>&nbsp;\u2013 Is Justin diversified?<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=1789s\" target=\"_blank\" rel=\"noreferrer noopener\">29:49<\/a>&nbsp;\u2013 Can a portfolio with just stocks and bonds be diversified?<\/li>\n\n\n\n<li><a href=\"https:\/\/www.youtube.com\/watch?v=G7wnyWhnx_Q&amp;t=2506s\" target=\"_blank\" rel=\"noreferrer noopener\">41:46<\/a>&nbsp;\u2013 Why rebalancing is essential for diversification<\/li>\n<\/ul>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally Posted September 25, 2023 &#8211; <a href=\"https:\/\/blog.validea.com\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\/\">The Many Sides of Diversification: Spreading Your Bets Across Stocks, Factors and Asset Classes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The idea of diversification is simple. Most investors understand that spreading your bets and avoiding overconcentration is a good idea. But the details behind how to do that can be much more complicated.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[455,6,13857,8,9,26,3],"tags":[8346,305,5273],"contributors-categories":[13819],"class_list":{"0":"post-196773","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-contributor-podcasts","7":"category-north-america","8":"category-podcasts","9":"category-region","10":"category-securities","11":"category-text-articles","12":"category-traders-insight","13":"tag-asset-class","14":"tag-diversification","15":"tag-investing-strategies","16":"contributors-categories-validea-capital-management"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Many Sides of Diversification: Spreading Your Bets Across Stocks, Factors and Asset Classes<\/title>\n<meta name=\"description\" content=\"The idea of diversification is simple. Most investors understand that spreading your bets and avoiding overconcentration is a good idea. But the details...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/196773\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Many Sides of Diversification: Spreading Your Bets Across Stocks, Factors and Asset Classes | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"The idea of diversification is simple. Most investors understand that spreading your bets and avoiding overconcentration is a good idea. But the details behind how to do that can be much more complicated.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/podcasts\/contributor-podcasts\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus US\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-27T13:45:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-27T16:29:20+00:00\" \/>\n<meta name=\"author\" content=\"Contributor Author\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Contributor Author\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"NewsArticle\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/contributor-podcasts\\\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/contributor-podcasts\\\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Contributor Author\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#\\\/schema\\\/person\\\/e823e46b42ca381080387e794318a485\"\n\t            },\n\t            \"headline\": \"The Many Sides of Diversification: Spreading Your Bets Across Stocks, Factors and Asset Classes\",\n\t            \"datePublished\": \"2023-09-27T13:45:00+00:00\",\n\t            \"dateModified\": \"2023-09-27T16:29:20+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/contributor-podcasts\\\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\\\/\"\n\t            },\n\t            \"wordCount\": 194,\n\t            \"commentCount\": 2,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#organization\"\n\t            },\n\t            \"keywords\": [\n\t                \"asset class\",\n\t                \"diversification\",\n\t                \"investing strategies\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"Contributor Podcasts\",\n\t                \"North America\",\n\t                \"Podcasts\",\n\t                \"Region\",\n\t                \"Securities\",\n\t                \"Text Articles\",\n\t                \"Traders' Insight\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/contributor-podcasts\\\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/contributor-podcasts\\\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\\\/\",\n\t            \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/podcasts\\\/contributor-podcasts\\\/the-many-sides-of-diversification-spreading-your-bets-across-stocks-factors-and-asset-classes\\\/\",\n\t            \"name\": \"The Many Sides of Diversification: Spreading Your Bets Across Stocks, Factors and Asset Classes | IBKR Campus US\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.com\\\/campus\\\/#website\"\n\t            },\n\t            \"datePublished\": \"2023-09-27T13:45:00+00:00\",\n\t            \"dateModified\": \"2023-09-27T16:29:20+00:00\",\n\t            \"description\": \"The idea of diversification is simple. 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