FYI: Earlier this year, the New York attorney general’s office reached an agreement with 13 mutual fund companies to publicly disclose their funds’ Active Share measures; the news has given new weight to this metric. However, advisors and other parties, including investors, marketers and regulators, should be wary of placing undue importance on Active Share out of context.
Active Share is a simple measure revealing how much an equity portfolio’s holdings differ from its benchmark index. An index portfolio will have an Active Share near zero, while a highly active one may score close to 100 percent.
Regards,
Ted
https://www.fa-mag.com/news/active-share--a-misunderstood-metric-40294.html?printActive Shares Info:
https://activeshare.info/about-active-share
