underdiversify

U1N1D2E1R1D2I1V4E1R1S1I1F4Y4

verb

To fail to diversify sufficiently.

Scrabble 25
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Meanings

verbunderdiversify (third-person singular simple present underdiversifies, present participle underdiversifying, simple past and past participle underdiversified)

present singular third person underdiversifies · participle present underdiversifying · participle past underdiversified · past underdiversified · alternative under-diversify

  1. To fail to diversify sufficiently.

    Individual investors underdiversify.

    2014, Michael A. Ervolini, Managing Equity Portfolios, →ISBN
    2 more examples

    A trader may underdiversify by focusing too narrowly on a small number of underlying securities, as well as using too few types of options strategies.

    2013, M. Thomsett, Options for Risk-Free Portfolios, →ISBN

    The second reason is a tendency to underdiversify their portfolios.

    2017, John R. Nofsinger, The Psychology of Investing, →ISBN

Origin

From under- + diversify.

Full word history & related roots →
Cite this entry
APA

underdiversify. (n.d.). In WatkinsX Dictionary. Retrieved November 2, 2026, from https://dictionary.watkinsx.com/word/underdiversify

MLA

“underdiversify.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/underdiversify. Accessed November 2, 2026.

Chicago

WatkinsX Dictionary, s.v. “underdiversify,” accessed November 2, 2026, https://dictionary.watkinsx.com/word/underdiversify.

Source: underdiversify on Wiktionary, CC BY-SA 4.0.