™Two funds allocating 20% and 10% to one company at portfolio weights 60% and 40% create 16% combined exposure to that company.
Risk & Portfolio
Diversification
Spreading exposure across holdings with different underlying risks rather than relying on one position or driver.
Plain-English context
Put the definition to work.
Ticker count alone does not establish diversification; shared holdings and drivers can remain concentrated.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — asset allocation and diversification