{"id":19634,"date":"2025-08-19T16:38:11","date_gmt":"2025-08-19T16:38:11","guid":{"rendered":"https:\/\/finderica.com\/?p=19634"},"modified":"2025-08-19T16:38:11","modified_gmt":"2025-08-19T16:38:11","slug":"well-diversified-portfolio-is-the-key-to-investor-confidence-cfp","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=19634","title":{"rendered":"Well-diversified portfolio\u00a0is the key to investor confidence: CFP"},"content":{"rendered":"
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Recent bouts of market volatility haven’t done much to dim investor confidence, according to a new report.<\/p>\n

After a year of wild market swings followed by the\u00a0S&P 500 hitting fresh highs last week, nearly two-thirds of investors expect their portfolios to perform the same or better in the coming months, according to Fidelity Investments’ “State of the American Investor<\/a>” study.<\/p>\n

However, while newer investors are increasingly bullish, seasoned investors have a more pessimistic outlook and lower risk tolerance, likely from experiencing other periods of extreme market fluctuations, the report found.<\/p>\n

Fidelity analyzed sentiment and behaviors of more than 2,000 adult “DIY investors,” or those who manage their own portfolios. The investors had at least $25,000 in investable assets outside of retirement and real estate.<\/p>\n

New and more experienced investors should be asking themselves, “How much risk do I need to take? Your willingness to take risks is always going to be changing,” said Tim Maurer, a\u00a0certified financial planner and the chief advisory officer at SignatureFD,\u00a0based in Atlanta.<\/p>\n

“We should always be calibrating,” he said.<\/p>\n<\/div>\n

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More from ETF Strategist:<\/h2>\n
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Here’s a look at other stories offering insight on ETFs for investors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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“Navigating shifting market conditions can be daunting,” said Josh Krugman, a senior vice president of brokerage at Fidelity Investments.<\/p>\n

Although newer investors felt better about investing in nontraditional assets, such as crypto, investors with over a decade of experience are adopting a cautious approach for the year ahead while seeking out stable investments to accomplish their more conservative goals, Fidelity’s report also found.\u00a0<\/p>\n

Focusing on the long term and adhering to a consistent investment strategy, along with a mix of investments, can help investors achieve better results over time, Krugman said. “That tends to help them get through the ups and downs of the market.”<\/p>\n

Maintaining a well-diversified portfolio\u00a0\u2014 including a mix of stocks and high-quality bonds, which have\u00a0historically performed well<\/a>\u00a0during downturns \u2014\u00a0is key, other experts also say.<\/p>\n

Exchange-traded funds or mutual funds, which are baskets of securities like stocks and bonds, “are easy vehicles to get a broad diversity of exposure to various asset classes,” Krugman said.<\/p>\n<\/div>\n

<\/a>ETFs notch record growth<\/h2>\n
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Exchange-traded funds, in particular,\u00a0have\u00a0gained popularity\u00a0among investors, with ETF assets crossing the $10 trillion mark last year \u2014 a trend experts say is largely due to advantages like lower tax bills and fees relative to mutual funds.<\/p>\n

“ETFs are one of the best ways for investors to get exposure to various swaths of the market at the lowest cost possible,” said Maurer, who is also a member of the\u00a0CNBC Financial Advisor Council.<\/p>\n

Exchange-traded funds are generally known for\u00a0passive strategies, but there has also been a surge in\u00a0actively managed ETFs, with the goal of beating the performance of broader markets.<\/p>\n

“Active and indexed ETFs are particularly popular because they price intraday,” Krugman said.<\/p>\n

Unlike mutual funds, which can only be traded once a day after the market closes, ETFs can be\u00a0bought and sold throughout the day<\/a>\u00a0and during extended hours.<\/p>\n<\/div>\n

<\/a>‘You still need to look under the cover’<\/h2>\n
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“ETFs are a fantastic innovation,” Maurer said.<\/p>\n

“My caution is that just because something is an ETF, doesn’t mean it’s a great investment,” he added. “It’s the wrapper around the investment, rather than an investment itself \u2014 you still need to look under the cover.”<\/p>\n<\/div>\n

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With potential economic headwinds in the back half of the year, there could be more volatility in store for markets, many experts say.<\/p>\n

That makes this “a great time for investors to be reassessing risk,” Maurer said, depending on their individual goals, life changes and time horizon, including keeping a certain amount of cash\u00a0“especially if that market volatility is causing you to lose sleep.”\u00a0<\/p>\n<\/div>\n

<\/a>The benefits of buffer ETFs<\/h2>\n
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So-called\u00a0buffer exchange-traded funds\u00a0could also provide some downside protection.<\/p>\n

Buffer ETFs, also known as defined-outcome ETFs, use\u00a0options contracts\u00a0to offer investors a predefined range of outcomes over a set period. The funds are tied to an underlying index, such as the S&P 500.<\/p>\n

But these ETFs also come with higher fees than traditional ETFs and typically need to be held for a year to get the full benefit.<\/p>\n

“It can be a helpful tool for those who would like extra layers of protection. But there’s always going to be a cost that comes with whatever protections you are going to get, and that’s often going to be limited upside,” Maurer said.<\/p>\n

Despite the trade-off, buffer ETFs could be a good option as you reassess your risk tolerance, he said.\u00a0<\/p>\n

Subscribe to CNBC on YouTube.<\/strong><\/em><\/a><\/p>\n<\/div>\n

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Don\u2019t miss these insights from CNBC PRO<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Recent bouts of market volatility haven’t done much to dim investor confidence, according to a new report. After a year of wild market swings followed by the\u00a0S&P 500 hitting fresh highs last week, nearly two-thirds of investors expect their portfolios to perform the same or better in the coming months, according to Fidelity Investments’ “State<\/p>\n","protected":false},"author":1,"featured_media":19635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[7813,3677,901,96,7812,7811],"class_list":{"0":"post-19634","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-cfp","9":"tag-confidence","10":"tag-investor","11":"tag-key","12":"tag-portfoliois","13":"tag-welldiversified"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/19634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19634"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/19634\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/19635"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}