As concentration risk grows within major indexes, Matthew Smart, Director of Financial Planning and Portfolio Analysis at WWM Investments, recently shared WWM’s approach with WealthManagement.com to helping clients build more intentional, diversified portfolios.

The article examines how investors can appear diversified across multiple ETFs and mutual funds while still holding significant exposure to many of the same large-cap stocks. Smart explains that WWM often favors individual stocks and direct indexing, which can give advisors greater flexibility to tailor portfolios around each client’s risk tolerance and objectives. As Smart puts it, “Diversification isn’t about how many stocks you own. It’s about how many independent sources of return you own.”

The piece also highlights WWM’s use of strategies such as structured notes to provide defined downside protection and enhanced income opportunities. Together, these approaches reflect WWM’s focus on moving beyond surface-level diversification and building portfolios designed around each client’s specific risks, goals, and long-term financial plan.