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Investment

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.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

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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