Is My Portfolio Actually Diversified?
A portfolio can look busy and still be concentrated. This checklist helps you spot hidden overlap in positions, sectors, currencies, and risk.
· 5 min read
Owning a lot of tickers does not automatically make a portfolio diversified. If several holdings move the same way, you may still be making one big bet.
The 4-check checklist
- Does one position dominate the portfolio?
- Are several holdings really the same sector bet? Two index funds can be too: VOO and VTI are 88.6% the same money.
- Are you exposed to the same country or currency twice?
- What happens to the portfolio if the market drops 10-15%?
Quick rule of thumb
- green: no single holding can hurt you too much
- yellow: the portfolio is spread out, but overlap is still worth checking
- red: one stock, one sector, or one currency clearly drives most of the risk
If you want to see the concentration view in a cleaner format, start with Portfolio tracker. If you want the downside side of the story, open drawdown monitoring and value at risk.
When you are ready to test the idea on your own holdings, open the demo.
#diversification#risk#portfolio#investing
Part of
cite: Julien Esnault, “Is My Portfolio Actually Diversified?”, Portfolio Terminal, 2026-03-31. plain-text version for AI tools
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