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.
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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.
