EPISODE · Dec 22, 2025 · 11 MIN
Avoiding ETF Overlap
from Why Advice?
In this episode of "What's the Risk", we revisit the topic of ETF overlap. We've looked at it in the past highlighting a combination of several ETFs and how the portfolio construction had a small increase in holdings as we added ETFs, but a larger and larger concentration of its top 10 holdings.Here we revisit the point of diversification and look at a few globally diversified portfolio options that an investor could use, with a small number of ETFs. We also highlight portfolio concentration isn't always a bad thing if there's a evidence backed purpose behind it, but if it's done unwittingly, an investor may end up with poor results they or portfolio volatility they didn't expect.We also highlight a tool called ETF Comparer built by a viewer, which is simple and effective in identifying overlaps between two ETFs. https://etfcompare.com.au/ Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/ https://www.mfg.com.au Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253. Hosted on Acast. See acast.com/privacy for more information.
What this episode covers
In this episode of "What's the Risk", we revisit the topic of ETF overlap. We've looked at it in the past highlighting a combination of several ETFs and how the portfolio construction had a small increase in holdings as we added ETFs, but a larger and larger concentration of its top 10 holdings.Here we revisit the point of diversification and look at a few globally diversified portfolio options that an investor could use, with a small number of ETFs. We also highlight portfolio concentration isn't always a bad thing if there's a evidence backed purpose behind it, but if it's done unwittingly, an investor may end up with poor results they or portfolio volatility they didn't expect.We also highlight a tool called ETF Comparer built by a viewer, which is simple and effective in identifying overlaps between two ETFs. https://etfcompare.com.au/ Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/ https://www.mfg.com.au Mancell Financial Group is an Authorised Representative No. 226266 and Credit Representative No. 403187 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253. Hosted on Acast. See acast.com/privacy for more information.
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Avoiding ETF Overlap
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