#DiversifyYourAssets
Add bonds to your portfolio to increase diversification.
If you want to diversify your portfolio further, a relatively easy way to do so is by investing in a global bond ETF. In Europe, the largest ETF in terms of total assets providing exposure to global bonds is the iShares Core Global Aggregate Bond UCITS ETF.
Below you can see a comparison of the performance (in USD) of the stock ETF, bond ETF and a portfolio with 50% in each. While the stock ETF has the best performance, there is less volatility in the 50/50 portfolio. Bonds have had a bad run due to a historic rise in interest rates, but if the next five years would feature worse stock performance but fairly stable interest rates, the bond diversification would improve the outcome.
Please note that this isn't a recommendation of those two specific ETFs as you need to be ensure that any specific investments suits your risk profile, time horizon and investment objectives.