Investment

Active Share

A measure of the percentage of portfolio holdings that differ from the benchmark index, used to quantify the degree of active management.

Quick answer: A measure of the percentage of portfolio holdings that differ from the benchmark index, used to quantify the degree of active management.

This term page is part of the Protermify Finance glossary and is published as static HTML for fast indexing and clear language coverage.

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Quick answer

A measure of the percentage of portfolio holdings that differ from the benchmark index, used to quantify the degree of active management.

Why it matters

Active Share matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Active Share?

In this glossary, Active Share refers to: A measure of the percentage of portfolio holdings that differ from the benchmark index, used to quantify the degree of active management.

How is Active Share used in finance?

In finance communication, this term appears in contexts such as: "A high Active Share indicates that a portfolio’s composition is significantly different from its benchmark, suggesting a strong active management approach."

Why does Active Share matter in finance?

Active Share matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Active Share?

Active Share is mainly used by Financial Analysts, Bankers, and Traders.

What category does Active Share belong to?

In this glossary, Active Share is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A measure of the percentage of portfolio holdings that differ from the benchmark index, used to quantify the degree of active management.

Operational example

A high Active Share indicates that a portfolio’s composition is significantly different from its benchmark, suggesting a strong active management approach.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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