How ETF Overlap Creates Concentration
Different ETFs can hold the same companies. Look-through exposure combines your direct stock holdings with the portions of those companies held inside your funds. Partial holdings data cannot establish complete exposure.
Hypothetical example
Hypothetical: $1,000 in Fund A with 5% in Company X, $1,000 in Fund B with 10% in X, plus $100 of X stock gives $250 in X out of $2,100 invested, or 11.9%. These weights are invented solely for this example.
Key takeaways
- Add direct and indirect exposure to the same company.
- Check the holdings date and the covered portion of each fund.
- Sector labels and share classes may need reconciliation.
Source & context
www.investor.gov — financial education referenceExamples are Sprinvo illustrations, not historical performance or guaranteed outcomes. Education only.