Member-only story
Analyse ETF Holdings Data Using Python
Analyse ETF holdings and uncover hidden exposures using Python and financial APIs
Investing in multiple ETFs might seem like a smart way to diversify a portfolio. After all, each fund may track a different market index, focus on a particular sector, or follow a unique investment strategy.
But here’s something investors often overlook.
Owning different ETFs doesn’t necessarily mean owning different stocks.
At first glance, your portfolio appears diversified.
You own three funds, each with a different investment strategy. Your investment dashboard shows separate allocations, different historical returns, and perhaps even different risk scores.
But what if all three ETFs have significant exposure to the same five companies?
You might own more NVIDIA, Apple, or Microsoft than you realize.
This is one of the interesting problems with ETF investing. Buying multiple funds doesn’t automatically mean you’re investing in different underlying assets.
An ETF provides exposure to a collection of securities, but the actual diversification depends on what’s inside that collection.
