Day 24: Build a diversified portfolio

By the end of this lesson you can

Spread the portfolio across holdings and sectors
Decide a core and satellite split
Check concentration as you build

Core and satellite

A simple structure is a core of broad, low-cost index funds with a few satellite positions in individual stocks you have researched. The core anchors the portfolio to the market; satellites are where you test your ideas.

A beginner might keep 50% to 80% in the core. The split is a choice about how much you want your result to differ from the market.

Spread the satellites

Avoid putting every satellite in one sector. Five technology stocks are closer to one big bet than five separate ones.

The simulator’s diversification panel shows sector weights and flags any holding above common concentration thresholds.

Try it in VEXA

Check your diversification →

Real data, so the numbers will differ from the lesson’s examples.

Key terms

Core and satellite: A portfolio built from a broad, low-cost core plus smaller individual positions.
Sector weight: The share of a portfolio invested in one sector.

Full glossary →

Paper Challenge task

Bring the portfolio to at least five holdings across at least three sectors, or include a broad index fund.

Open the Paper Challenge

Simulated trading with virtual money on real end-of-day prices. Nothing is bought or sold for real, and results in a game do not predict real-world results.

Try it

Check the diversification panel in the Paper Challenge and fix any warnings it shows.

Key takeaways

Use a broad core plus researched satellites.
Spread satellites across sectors.
Check concentration as you build.