This study examines the impact of electronic diversification (e-diversification) on financial decision-making in the construction of investment portfolios. The research is conducted on a sample of five banks listed on the Iraq Stock Exchange over the period 2019–2023. A quantitative comparative approach is employed to evaluate the performance of a traditional portfolio and an electronically optimized portfolio based on risk–return indicators. The empirical analysis assesses the effectiveness of applying digital optimization techniques in improving portfolio allocation under uncertain market conditions. The results indicate that the electronically diversified portfolio outperforms the traditional portfolio. Specifically, the expected return increases from 0.66% to 6.13%, while portfolio risk decreases from 3.77% to 1.07%. These findings suggest that e-diversification enhances investment efficiency by improving asset allocation and reducing exposure to market volatility. The study concludes that electronically supported diversification provides a more structured and data-driven framework for investment decision-making compared to traditional portfolio construction methods, particularly in emerging financial markets.