Market Volatility: Portfolio Diversification Is Winning in 2025

Amy Arnott, Morningstar Inc. portfolio strategist, discusses the success of the 60/40 portfolio and how diversification is paying off during market volatility this year.

How Diversification Has Held Up Against Market Volatility in 2025
Which Asset Classes Have Been Strong Diversifiers in 2025?
Which Asset Classes Have Struggled as Diversifiers?
How Have US vs. Non-US Stocks Performed in 2025?
Can Investors Still Turn to Fixed Income During Market Volatility?
How Correlations Between Asset Classes Is Key to Diversification
60/40 Portfolio vs. Diversified Portfolio
Why the 60/40 Portfolio Outperformed in the Long Term
The Best Ways to Diversify Your Portfolio During Market Volatility
What Hasn’t Held Up as Portfolio Diversifiers?
How Tough Macro Environments Affect Diversification Patterns
Key Takeaways

Read about topics from this episode.
Diversification Landscape: Building Diversified Portfolios (morningstar.com/business/insights/research/div…)
3 Assets That Might Not Diversify as Well as You Think (morningstar.com/portfolios/3-assets-that-might…)
Portfolio Diversification: Answers to Your Questions (morningstar.com/portfolios/portfolio-diversifi…)
The Best Ways to Diversify Your Investment Portfolio in Today’s Market (morningstar.com/portfolios/best-ways-diversify…)
Should Investors Rethink Global Diversification Amid Tariff Uncertainty? (morningstar.com/funds/should-investors-rethink…)
For Diversification From Stocks, Cash Has Made a Good Case for Itself (morningstar.com/portfolios/diversification-sto…)
What Higher Inflation Means for Stock/Bond Correlations (morningstar.com/portfolios/what-higher-inflati…)
Morningstar’s Guide to Diversification (morningstar.com/portfolios/morningstars-guide-…)
Why Portfolio Diversification Has Helped in 2025 (morningstar.com/portfolios/why-portfolio-diver…)
Why Holding Assets Outside the US Dollar Has Paid Off in 2025 (morningstar.com/portfolios/why-holding-assets-…)

What to watch from Morningstar.
13 Elite Companies With Fast-Growing Dividends (youtu.be/CiTeStBNnh8?si=lIaaIug8wv-0B0GI)
The Stock Strategies That Are Paying Off in 2025 (youtu.be/qDemoET98RU?si=DOEMfihD2sgbF0uv)
Worried About Inflation? What to Know Before Buying TIPS ETFs (youtu.be/TODz0lOSbvo?si=SfvGQBw5hra43EET)
Market Volatility: The Trade Deals That Could Calm Wall Street (youtu.be/OKps3BWCIbM?si=4Mh0D-9HWmfNCdmi)

Read what our team is writing:
Amy Arnott (morningstar.com/people/amy-c-arnott)
Ivanna Hampton (morningstar.com/people/ivanna-hampton)

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