Overlap
Measure how much the funds hold of the same: for every pair of funds the sum, over the holdings they share, of the smaller of the two weights. An overlap of 0.8 means 80% of the two portfolios is the same, so holding both adds little diversification.
Also known as: ETF overlap, portfolio overlap, holdings overlap.
Overlap in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_overlap as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["VOO", "QQQ", "VTI", "SCHD"], api_key="FINANCIAL_MODELING_PREP_KEY")
toolkit.etf.get_overlap()
Or, after setting up the Finance Toolkit MCP, ask:
How much do the holdings of VOO, QQQ, VTI and SCHD overlap with each other?
Which returns:
| VOO | QQQ | VTI | SCHD | |
|---|---|---|---|---|
| VOO | 1.0017 | 0.556 | 0.8911 | 0.0764 |
| QQQ | 0.556 | 1.0014 | 0.4994 | 0.0516 |
| VTI | 0.8911 | 0.4994 | 1.0005 | 0.071 |
| SCHD | 0.0764 | 0.0516 | 0.071 | 1 |
Parameters
get_overlap accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
rounding | int | None | The number of decimals to round the results to. Defaults to None, which uses the rounding of the Toolkit. | 2 |