How do you read ETF overlap?

An overlap of 90% means the two funds are almost the same basket, even with different names. An overlap of 0% means they share no holding, for example a stock ETF and a bond ETF.

ETF overlap

ETFs and bonds

How much of the same holdings two ETFs share.

How it is worked out

For every stock held by both, take the smaller of its two weights, and add them up.

How to read it

An overlap of 90% means the two funds are almost the same basket, even with different names.
An overlap of 0% means they share no holding, for example a stock ETF and a bond ETF.

Example

Apple is 7% of one ETF and 5% of the other: it adds 5% to the overlap.

Related terms

ETF (exchange-traded fund)A fund that holds a basket of stocks or bonds and trades on the exchange like a single share.
Holding weightWhat share of a fund's value sits in one stock or bond.
Form N-PORTThe filing in which US mutual funds and ETFs report to the SEC what they hold.

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