Use these ETFs to perfectly diversify your portfolio
Diversification between sectors is important. As a rule, it is addressed by investors who choose individual stocks. But it should also be a focus for passive investors who maintain a portfolio of ETFs only.
The ETF itself is usually very popular precisely because it provides diversification directly within a given sector, trend or geographic area. But what if you want to diversify across sectors as well? Then check out this introduction to interesting ETFs from each sector.
Financial Sector - $IVOL - Quadratic Interest Rate Volatility and Inflation Hedge ETF.
IVOL - Quadratic Interest Rate Volatility and Inflation Hedge ETF is an inverse ETF that seeks to provide exposure from yield curve volatility while protecting against inflation. It tracks the QVOL Strategic Interest Rate Volatility and Inflation Hedge Index.
It is structured as an inverse ETF, meaning it should rise when bond market volatility rises. It uses derivatives including option strategies and swaps to achieve its objective. …
For me, diversification in today's globally interconnected world is a terribly complex topic and I believe it doesn't work very well. Diversification in the sense of commodities/shares/crypto (partially) and then maybe real estate makes sense to me... but diversifying in just stocks for example (somehow long term) is almost impossible for a mere mortal in my opinion... except for trading but I'm not into that :)
If someone is looking for diversification, funds are a great opportunity to do so. There is no need to look for complicated formulas in the market and to find complicated companies to diversify, while the company itself must be good and preferably profitable in the future. This is a great way to diversify.
Portfolio diversification is important, so these funds can be useful. But it depends on the investment horizon and risk profile of the investor. For long-term investors, they might be suitable.