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Index Funds, NFOs, Benchmarks & Portfolio Overlap

Explore index fund launches, benchmark construction, costs and weighted overlap. More stock names do not automatically mean more diversification.

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How should I compare index funds and their benchmarks?

Explore index fund launches, benchmark construction, costs and weighted overlap. More stock names do not automatically mean more diversification.

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How is weighted overlap different from counting common stocks?

A common-stock count treats every holding equally. Weighted overlap compares portfolio percentages and sums the smaller weight for each shared security. This helps identify how much exposure is duplicated, while remaining a snapshot of the disclosed portfolios rather than a prediction of future returns.

Can two funds with different names still hold similar portfolios?

Yes. Their mandates and eligible investment universe can lead them to hold many of the same securities. Compare security-level weights, market-cap exposure and sector allocations. Different fund houses or a larger number of schemes do not, by themselves, establish meaningful diversification.

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