REIT — reasonable returns, but
riskier than the broad market; with a relatively low correlation with stocks you can profit from rebalancing.
In addition, research reveals that a «tilt» toward small - cap and value stocks (which can be
riskier than the broad market) can increase expected returns over the very long term.
Not exact matches
However, these higher yielding bonds are often the most
risky, resulting in a lower risk - adjusted return
than the
broad market.
A fund that invests in just one type of stock or bond such as one industry sector, world region, country, or
market capitalization will be less diversified and more
risky than a
broad based fund that invests in many companies across multiple industries, countries, and
market caps.
A sector funds tend to be
riskier and more volatile
than the
broad market because they are less diversified, although the risk level depends on the specific sector.
For that matter, your bond holdings could also have been more
risky than the
broad bond
market, which could be the case if you invested heavily in high - yield, or junk, bonds, which lost more
than 25 %.
Having all your shares in one company is very
risky — far more
risky than owning a
broad stock
market investment.
Some sector funds tend to be
riskier and more volatile
than the
broad market because they are less diversified, although the risk level depends on the specific sector.