While the potentially transformational AI buildout has driven impressive growth in the U.S. economy, the growing dominance of U.S. mega-cap stocks may be leading advisors to reconsider the appropriate tools to build diversification and resilience into their clients' portfolios. Below, we outline several strategies for consideration.

Diversify beyond equities

Investors may enhance portfolio diversification by incorporating assets with lower correlation to equities, such as fixed income instruments and alternative assets like gold, as complementary sources of return.

iShares Core Canadian Short-Mid Term Universe Bond Index ETF

You may also like:

• iShares Core Canadian Universe Bond Index ETF

• iShares Gold Bullion ETF

#youmay2 { background-color: #C4C8CC !important; }

Look beyond U.S. markets

U.S. equities have long benefited from strong corporate earnings, while developed markets outside the U.S. may offer better valuations and higher dividends.¹

By incorporating Canadian and international equities, investors may benefit from geopolitical trends while mitigating the higher valuations and concentration risks found in U.S. equity allocations.

iShares Core MSCI EAFE IMI Index ETF

You may also like:

• iShares Core S&P/TSX Capped Composite Index ETF

#youmay1 { background-color: #A8DAEF !important; } #youmay1 li, #youmay1 a, #youmay1 rbc-caption { white-space: nowrap; display: flex; align-items: center; }

Manage U.S. equity concentration

Investors seeking exposure to leading U.S. companies while managing mega-cap concentration risk may want to consider investment strategies that help reduce mega-cap stock weight while maintaining a focus on growth and quality.

iShares S&P 500 3% Capped Index ETF

You may also like:

• iShares Core MSCI US Quality Dividend Index ETF

#youmay3 { background-color: #FEEF80 !important; } #youmay3 li, #youmay3 a { white-space: nowrap; }

Next steps

How can we help?

The RBC iShares alliance offers an unparalleled breadth of ETF solutions, a commitment to exceptional service and top investment expertise located around the world.

Advisors: Contact your dedicated sales team and access portfolio resources – Login here.

Investors: Contact your financial advisor to discuss which investments may be right for you.