Have Correlations Made Your Holdings One Colour?

VIDEO: Higher correlations have paradoxically caused diversification tools to be even more important than they were before

Christine Benz 10 April, 2012 | 9:59AM
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Christine Benz: Hi, I'm Christine Benz for Morningstar.

Whether the proliferation of index funds and exchange-traded funds has helped drive increasing correlations and volatility in the market, has been the subject of some debate in the investment community during the past several years.

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About Author

Christine Benz

Christine Benz  is director of personal finance at Morningstar and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances.