Eurostoxx 50 investors 'unintentionally making a bet on financials', according to research

A diverse group of people
Seeking diversity, but are investors actually finding it?

Investing in the Eurostoxx 50 index is not a neutral risk allocation but rather implies a strong weighting toward financials, according to Paris-based asset manager Tobam's first monthly analysis of the diversification of key indexes using the Diversification Ratio (DR2) method.

The ratio, which measures the extent to which a portfolio is diversified by using a monthly analysis of the evolution of diversification in key indexes, reveals that while the volatility of the Eurostoxx 50 index was 21%