Editorial
What to consider in your portfolio construction
Marketing Communication
Construction. Foundation. Building blocks. Construction-related metaphors lend themselves to the investment world in a surprisingly useful way.
Like housebuilding, building a portfolio requires a solid base. The foundation of a house is unlikely to be the part that wins architectural awards, but it is essential to the integrity of the house. In a similar way, foundational funds, such as Amundi’s Core ETF range, are crucial to a robust portfolio.
In our article focused on core ETFs, we detail how these funds – whether equity or fixed income –could form part of your strategic asset allocation. This is because core ETFs could offer diversification1.
For retail investors, who might not have the time or resources to constantly monitor the market, diversifying1 is a way to potentially manage risk and build wealth more steadily.
In addition to core funds, we also dig deeper into the role government bonds could play as a portfolio building block, both as a strategic allocation and more tactically.
There are many other facets to portfolio construction such as how to integrate more niche market opportunities. One current example is in European equities. Governments on the continent have committed to a more coherent security policy and massive fiscal stimulus.
Taken together, this has created potential opportunities in European defence stocks, which investors could potentially unlock2 with Amundi’s European defence ETF3.
It’s important for investors to build their portfolio with their personal goals, time horizons and risk tolerance in mind. This is why we have offered a broad range of insights about portfolio construction2. We hope you find them helpful.
1 Diversification does not guarantee a profit or protect against a loss.2 Investment involves risks. For more information, please refer to the Risk section below.3 For more information, please refer to the fund’s prospectus.
