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Overlap analysis — diversification, verified.

Holding more funds is not the same as holding more diversification. Overlap analysis tests whether the household is genuinely diversified or simply duplicating the same exposure with different tickers.

Why overlap is invisible without aggregation

Each account, viewed alone, looks reasonable. The duplication only emerges when every position is rolled up to the household level and grouped by underlying exposure rather than by ticker.

What the indicator measures

The MRI groups holdings by symbol and asset type, identifies clusters above a meaningful threshold of household value, and flags overlap that warrants a closer look. The score is preliminary — the advisor decides whether the overlap is intentional or worth unwinding.

Common patterns we see

Target-date funds layered on top of advisor-managed large-cap, multiple S&P 500 ETFs across taxable and retirement accounts, and high-correlation 'diversifiers' that move together in stress. The conversation starts here, not the recommendation.

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

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FAQ

Frequently Asked Questions

What is portfolio overlap?

Portfolio overlap is the same underlying exposure held through multiple funds, accounts, or advisors. Owning VOO, IVV, and SPY may feel like diversification — it is the same S&P 500 exposure stacked three times.

How does overlap show up in real households?

Most often as duplicated large-cap U.S. equity across a 401(k) target-date fund, an advisor-managed brokerage, and a self-directed Roth. The household ends up with concentrated exposure no single account reveals.

How does the MRI detect it?

The diagnostic aggregates positions by symbol and by underlying asset type, then identifies clustering that is unlikely to be intentional. Findings are flagged for advisor verification — never treated as automatic recommendations.