Wealth Protection Advisory
AI Portfolio MRI™ · Indicator

Portfolio overlap — the diversification illusion.

Multiple accounts and multiple advisors do not equal diversification. Overlap is the most common reason a portfolio appears diversified on paper but behaves like a single position in practice.

Why it matters

Three large-cap U.S. equity funds can hold the majority of the same names. A 401(k) target-date fund and a taxable brokerage may double up on the same index exposure. Each account looks reasonable in isolation; the household behaves like a single bet.

How the indicator is computed

Holdings are aggregated by symbol across all uploaded sources. Symbols that appear in more than one source contribute to a duplication weight. The score penalizes both the count and the cumulative weight of duplicated positions.

What the advisor verifies

Whether duplication is intentional (e.g. a deliberate satellite position) or incidental, whether tax-lot location matters, and whether consolidation would simplify rebalancing without triggering avoidable tax events.

Run the AI Portfolio MRI™

Receive a confidential, preliminary diagnostic across all five indicators. Advisor verification required before any recommendation.

Begin Diagnostic
FAQ

Frequently Asked Questions

What is portfolio overlap?

Overlap is when the same underlying exposures appear across multiple funds, accounts, or advisors — often without the household realizing it. Three large-cap funds can hold 60% of the same names.

Why is overlap easy to miss?

Because it lives at the underlying-holdings level, not the fund-name level. Two funds with very different names can have nearly identical top-ten lists.

How does the diagnostic detect it?

By aggregating uploaded positions by symbol across all submitted accounts and flagging symbols that appear from more than one source. The aggregate weight of duplicated exposures drives the indicator.