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Search for an ETF or holding
Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
Overlap occurs when two ETFs held in the same portfolio contain the same securities. For example, if you hold VFV.TO (S&P 500) and VEQT.TO (global including ~45% US stocks), you have double exposure to large US companies, which reduces your actual diversification.
VEQT.TO and XEQT.TO have over 95% overlap because they track similar global indices. Holding both in your portfolio adds zero additional diversification — you pay fees twice for the same result. VFV.TO and ZSP.TO have nearly 100% overlap since they track the same index (S&P 500).
Many beginners think having multiple ETFs means being better diversified. But if those ETFs hold the same stocks, the diversification is illusory. Before adding an ETF to your portfolio, it's important to check the overlap with what you already hold. The overlap tool on investirenbourse.ca lets you visualize this easily.