Tiaa Cref Lifecycle Index Fund Quote

Investors will always prefer to have their portfolios divercified against different sectors. The broad sector allocation increases the possibility of making a profit or at least avoiding a loss. However, this may also reduce the expected return on TIAA-CREF Mutual Fund. Generally, it depends on diversification level and type but usually, the broader the sector allocation, the less risk can be expected from holding TIAA-CREF Mutual Fund, and the less return is expected.

Institutional investors that are interested in enforcing a sector tilt in their portfolio can use exchange-traded funds, such as Tiaa Cref Lifecycle Index Mutual Fund, as a low-cost alternative to building a custom portfolio. So, using sector ETFs to diversify your portfolio can be a profitable strategy. However, no matter what sectors are desirable at a given time, no single industry should ever make up more than 20 percent of your stock portfolio.