Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton. Investing Insights is helping investors

navigate market volatility in a new series. Morningstar strategies and authors will

deliver timely insights, trends, and tips, and these episodes will regularly pop into your

podcast feed. This week's episode focuses on how portfolio diversification is proving its worth

in 2025. We have seen significant market turmoil this year.

A team of Morningstar researchers have investigated the benefits of creating a diversified portfolio.

A tried and true version has helped shield many investors. Morningstar Inc. portfolio strategist

Amy R. Not is one of the co-authors of the 2025

diversification landscape report. Thanks for being here, Amy. Thanks. Great to be here.

Before we get into the new report, can you talk about the trends that you've seen in 2025?

Yeah, so obviously we've had a lot of volatility in the market, a lot of uncertainty and

changes around tariff policy.

So because of that, we had U.S. stocks were actually down 20% from their peak at one point

in April, but have now bounced back and are actually

in positive territory for the year to date. But as you mentioned in the intro, kind of big

picture, we have seen more benefits from portfolio diversification this year. So that has

definitely been a net positive from a portfolio perspective.

And which asset classes have held up so far this year?

Yeah, there are a few different things.

So gold has definitely done extremely well.

It's up about 30% so far this year through the beginning of June.

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