Diversification-based Investing

Diversification Based Investing

QS Investors is a pioneer in the creation of Diversification Based Investing (QS DBI) strategies. QS DBI strategies unwind market-cap weighted indices and rebalance the components to eliminate any over-exposure to one asset class, sector, or geography. With a balanced diversification, QS DBI is designed to reduce the high-risk over-concentration typically found in market-cap weighted indices, with the goal of improving risk/return characteristics while also mitigating the potential for significant drawdowns during macro-economic events.

Outcome Coverage

Wealth Creation QS DBI is a highly diversified equity strategy designed to participate fully in equity markets. Risk Mitigation QS DBI is designed to lose less in down markets and avoid over allocation to any one sector or country.

Diversified & Balanced Exposure

Diversification Based Investing

QS DBI is an approach that gives investors diversified and balanced exposure to equity markets. Market Cap passive investing is exposed to the collective enthusiasm of the market which can lead to high concentrated exposure to a small number of countries, sectors or stocks. That’s not only a risk, but investors are missing out on other opportunities. Through more diversified exposure to the market, DBI is designed to improve the risk/return profile of your portfolio by reducing market drawdowns and exhibiting a low correlation of excess returns to other active managers.

Meet Your Managers

Michael LaBella Picture

Michael LaBella, CFA

Head of Investment Strategy

Responsible For:

  • Diversification Based Investing
  • Defensive Equity Income
See Michael's Insights read full biography
Russell Shtern Picture

Russell Shtern, CFA


Responsible For:

  • Active Factor Equity
  • Diversification Based Investing
  • Defensive Equity Income
  • Liquid Alternatives
read full biography

QS Strategy Composite

  • Diversification Based Investing (DBI) Emerging Markets
  • Diversification Based Investing (DBI) Global Equity
  • Diversification Based Investing (DBI) International Equity
  • Diversification Based Investing (DBI) US Equity

QS Strategies are available to institutional investors through an array of investment vehicles.
Contact us to discuss options

Legg Mason Investment Vehicles


  • Legg Mason QS Emerging Markets Equity Fund