Are ETFs the Best Way to Diversify?

You'll often hear that it's important to maintain a diverse portfolio if your goal is to grow long-term wealth. A diverse portfolio could also help minimize losses during a stock market crash.

You have different options when it comes to assembling a diverse investment mix. You could buy a whole bunch of different stocks from various market sectors, or you could load up on ETFs, or exchange-traded funds.

ETFs are publicly traded funds that allow investors to buy many stocks at once. They're similar to mutual funds in that they consist of a bunch of different companies, but they're different in that their share price can change numerous times a day, whereas mutual funds are priced once daily and also don't trade on major exchanges.

Source Fool.com