In the morning, you check the value of your portfolio at «

The portfolio value is determined by the prices of all the instruments included in it, in our case — ETF shares. When the price of an asset in the market falls, the value of the portfolio may decline, but not as much as the price of the falling asset. Through diversification: “

The ETF stocks themselves, by their very nature, fully meet the diversification requirements. These are shares of a fund that itself invests in dozens and hundreds of companies, whose shares are included in the calculation of stock indices.

All these companies cannot fall in price at the same time — this is how the ETF protects the investor from fluctuations in individual stocks.

The portfolio value is influenced by the situation in the economy and the market. For example, political decisions by the authorities of a country can affect the index of companies in that country. A strike by workers in an industry is to drop the index of that industry.

The peculiarities of a globally diversified portfolio are that it is not limited to investments in a particular sector or country. As a result, even catastrophic events for an individual economy, such as country sanctions, cannot have a destructive effect on the investment portfolio. So, during the episode described above, other country stock markets did not experience problems — the American market, for example, rose.

Correct decision: do nothing. The prices of individual assets change frequently and quickly — some news overlaps with others. But over time, the fluctuations flatten out: in the long term, the indices tend to

The situation when you have an asset in your portfolio that is steadily declining in price is unlikely. This is due to the fact that the index approach in investments based on investments exclusively through

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