Fund Overlap Daniel Guidotti 14 years ago Fund OverlapHappens when several mutual funds or ETFs which have positions in the same securities are owned by a single investor. Fund overlap limits the gains that normally accrue from diversification in the portfolio.Recommended for you:Analysis of The Vanguard Fund and FBR’s GASFX Fund Is that Really a Mutual Fund or Just Diluted Equity Position? Context of a Mutual Fund – Vanguard Specialized Energy Fund (VGENX) Mutual Fund