Gen Z loves ETFs-what they should watch out for

One of the key factors of a generally healthy investment portfolio is diversification or, in other words, ensuring you aren't putting all of your eggs in one basket, financially speaking.

A diverse portfolio can help protect investors from significant losses if a single company or sector you're invested in faces a major downturn. If you put all your life savings in Apple stock and the company suddenly goes under, for an extreme example, you'd be in rough shape. But if your investments are spread out across Apple, Walmart, Johnson & Johnson and various other companies, you can generally decrease risk in your portfolio because it's less likely they'd all have a downturn at the same time.