diversification

This type of research lives on under the banner of safety/security through automatic diversification or diversity.

> the fact is everyone is hedging their bets and are diversified in a way (within tech) That is in no way diversification.

So the question is: does additional asset class diversification plus tax optimization yield at least a 0.25% increase in your total return (net of taxes and fees) in an average year?

There will likely still be money to be made over the following days until the addition is complete, but it's far from guaranteed, and comes at the expense of reduced diversification.

The money they're making is surely coming from someone's pocket, and that probably means the middle class day-trader rather than the NYC firms with billions to spend on diversification.

The key concept here is diversification - having more than one source of income.

You're paying 0.25% in exchange for automatic rebalancing, asset class diversification, and tax optimization.

Low retirement ages, low taxation due to fraud, government being the largest employer, lack of diversification, etc.

The 1000 low-margin customers also come with the added benefit of diversification.

I also believe you are underestimating the amount of diversification that a dozen stocks chosen from different industries can provide.

Automated diversification and keyed hardware SOC's to make Linux probabilistically secure.

The 'economist-ic' explanation is 1) diversification 2) agent-principal problem 3) asymmetric information (books are cooked, owner is selling because something is about to hit the fan).

In the UK, Virgin was the first company to successfully fight the BA-led legacy airline oligopoly; BA went as far as offering free flights "as a national service" to MPs and it was only Virgin's diversification which gave it the reserves and time to beat BA's long price war.