What is Active Share?
Active Share A measure of the percentage of portfolio holdings that differ from the benchmark index, used to quantify the degree of active management.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Active Share” Used in Practice?
A high Active Share indicates that a portfolio’s composition is significantly different from its benchmark, suggesting a strong active management approach.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Active Share?
A measure of the percentage of portfolio holdings that differ from the benchmark index, used to quantify the degree of active management.
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