How to Diversify Your Portfolio to Handle a Market Correction [Video]

Bond funds from Fidelity, Vanguard, and J.P. Morgan could help diversify growth-heavy portfolios.

Russel Kinnel, director of ratings for Morningstar Research Services, discusses large growth’s impressive run in 2024 and why it might be time to rebalance if you haven’t in a while.

01:23 What is Driving Growth’s Impressive Run?

01:57 Why Is it Important to Rebalance Now

02:34 What Triggered Growth’s Largest Selloffs Since 2000

04:43 What Was Unusual About the Growth Correction in 2022

05:38 Top-Rated Bond Funds that Could Help with Saving for an Emergency Fund

06:27 Bond Funds that are Defensive if Growth Gets Crushed

07:33 Small-Value Funds Out of Sync With Large Growth

08:30 Mid-Growth Funds that are Good Diversifiers

Read about topics from this episode.

Subscribe to the Morningstar FundInvestor newsletter. https://newsletters.morningstar.com/mfi/learn

6 Top-Performing Large-Growth Funds https://www.morningstar.com/markets/6-top-performing-large-growth-funds-2

Is It Time to Diversify Beyond US Large-Cap Growth Stocks? https://www.morningstar.com/financial-advisors/is-it-time-diversify-beyond-us-large-cap-growth-stocks

How to Rebalance Your Portfolio Before 2025 https://www.morningstar.com/portfolios/how-rebalance-your-portfolio-before-2025

The Best Funds for Rebalancing in 2025 https://www.morningstar.com/funds/best-funds-rebalancing-2025

The Best Bond Funds https://www.morningstar.com/funds/best-bond-funds

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Read what our team is writing:

Russel Kinnel https://www.morningstar.com/people/russel-kinnel

Ivanna Hampton https://www.morningstar.com/people/ivanna-hampton

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