VistaShares

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VistaShares delivers innovative Liquid Alternative investment solutions for today's investors. VistaShares ETFs are actively managed by industry and investment experts, offering a number of distinct strategies. Supercycle® Growth Equity ETFs seek exposure to technology-driven economic Supercycles® that the adviser believes may offer long-term growth potential. Target 15® option-income ETFs seek to generate monthly income while complementing a core equity portfolio. Income is not guaranteed and will vary, and the Target 15® name refers to the strategy's objective rather than a guaranteed or promised return. Investing involves risk, including possible loss of principal. There is no guarantee that any investment objective will be achieved, and past performance does not guarantee future results.

The subject of this address

This address writes about overlap: what a portfolio already owns before anything new is added to it. A core allocation bought for breadth often already carries a large share of whatever a thematic sleeve is being considered for, so the marginal exposure a decision actually buys is smaller than the sleeve implies and sometimes close to nothing.

Working that out is a look-through exercise rather than a category one. Two funds in different categories can hold six of the same ten companies at the top, and two in the same category can barely intersect. The label is the least informative thing on the page for this particular question.

The uncomfortable version is that a portfolio can be diversified by line item and concentrated by company.

That shows up in a drawdown, it does not show up in a holdings count, and it is the reason the work is worth doing before the position exists rather than after.

The work itself is unglamorous and takes an afternoon: pull the holdings, match them by company rather than by name, and see what is left. It is almost always worth the afternoon.

Whose address this is

vshareswealth.com belongs to VistaShares, and every message that comes from it is ours. What we publish is not kept here: it lives on our main website, vistashares.com.

If a message from vshareswealth.com reached you and you want to confirm it came from us, write to info@vistashares.com or call (844) 875-2288.

The words that come up here

  1. Sizing. The decision that most arguments about whether to own something are really about, conducted openly rather than left implied.
  2. Sleeve. A part of a portfolio held for one purpose, which only earns its place if what it adds is not already there.
  3. Look-through. Reading the companies rather than the labels, because two funds in different categories can hold most of the same names.
  4. Band. The drift a plan tolerates before it acts, chosen in advance so the decision survives the quarter in which acting feels least sensible.