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Does the “less is more” approach work for ETFs?

The piece argues that portfolios with fewer holdings can still diversify exposure, while themes like chips and bonds may help stabilize returns.

Reported · Written up by our desk · ETFs

A Markets piece examined whether an ETF strategy built around fewer holdings can deliver diversification benefits, using the “less is more” concept as its framework.

The article points to sectors such as chips and to fixed income, suggesting that including assets like bonds can help reduce volatility as markets move.

The discussion frames the question as an active design choice for ETF investors, weighing simplicity against how well portfolios perform across different market conditions, according to WSJ Markets.

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