G'day Some nice portfolios have been shared by the generous members on this board. They look good, and each example had good reasons behind how and why the portfolio was split up the way it was. One common feature was diversification into several funds or ETFs with the concept that each fund/ETF represented a 'different' asset class or subclass. I guess my question is: If you had chosen these funds/ETFs for low- or no- correlation, but expected similar returns, how have your portfolio actually faired during the volatility that we've seen in the past 6-8 weeks? Did each asset class prove to be as lowly correlated as you expected? If you have real-life examples to share, please do My experience with my 'training' portfolio: - Australian shares: STW (drop the most) and Vanguard High Yield Aust Shares - LPTs : SLF - International : Ishares: IOO, IEM, IJR - direct resi property The entire pie has certainly grown smaller - but the diversification DID reduce the volatility - which for me was a feature that i wanted. The only negative correlation that i was able to get was thru my resi property - but really, i think this might just be a simple lagging effect. Maybe when the credit crunch arrives on our shores, it too may go south(?). Not sure. Any thoughts?