Opinion
What to do if you have big wins in your share portfolio
It’s easier to manage concentration risk if you hold direct shares, but not so simple if you’re an ETF investor.
Tim MackayContributorInvestors with exposure to artificial intelligence and weight loss drugs have done well in recent years. Stocks like Nvidia and Novo Nordisk have skyrocketed and now comprise a far larger percentage of portfolios. Too much of a good thing is a problem, however, reducing diversification and introducing concentration risk.
It was two decades ago that Nvidia replaced Enron in the S&P 500. Since then, Nvidia’s shares have collapsed by more than 50 per cent three times.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Personal finance
Fetching latest articles