Holdings Analysis Measures & Active Share

Active Share: Active Share is one-half of the sum of the absolute values of differences between the benchmark and portfolio for all positions, expressed as an integer between 0 and 100. Zero Active Share represents a portfolio identical to the benchmark, while an Active Share of 100 indicates that the portfolio and benchmark have no positions in common. The measure is calculated at a point in time, likely on quarter-end positions, and is often presented as a three-year moving average.

Active Share Formula

Where wfund,i and windex,i are the portfolio weights of asset i in the fund and in the index, and the sum is taken over the universe of all assets.

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