📊 ETF Overlap Is Overblown !

Every time someone owns $VOO and $QQQ / $QQQM Someone points out the overlap.

My question is If you’re intentionally putting more money into companies you believe in, is overlap actually a problem?

Or is it only a problem when you don’t realize it’s happening? Really when is it a problem ? I personally like the overlap I have with my ETFS with me investing even more into $AAPL

Do most people see a problem with overlap or is that just its own type of investors?

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4 Comments

Sumish Shetty@sumishs · 57m

Intentional overlap is okay as long as you understand the risks. With so much of your portfolio dependent on tech sector, one bad cycle and you will see your portfolio take a major hit. Assess your risks.

Diana @diceblocks · 1h

Well I think it’s more so that VOO and QQQ/QQQM overlap so much in tech companies that if you invest so much in them your portfolio is strongly dependent on their performance, even if you believe in them. Thats why diversification is important. However, if you are satisfied with your position it all comes down to how much you’re willing to risk.

Scott S@scottsinvesting · 1h

I agree Oscar... For the most part, overlap is only an issue if you aren't aware of it. If it fits into your equity allocation plan, no issues IMO...

David Chersia

@daikeks · 1h

I think it starts becoming a problem when you’re adding more of the same holdings. For example 50% VOO and 50% QQQM Or 40% VOO 40% QQQM with the rest tech stocks.

It becomes super redundant

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