Avoid This Hidden Risk of Index Funds
Investing in index funds is a good way to gain exposure to a broad range of stocks, but it's not without risk.
Overview
Index funds are a popular investment tool. In fact, it's possible to build an entire portfolio with index funds alone. However, that doesn't mean they're without risk.
If you own multiple index funds, you may be overlooking a hidden risk: Overlapping. It's important to understand what overlap is and how to avoid it when creating a diversified portfolio.
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Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.