Active Share
A measure of how different a fund's holdings are from its benchmark, on a 0-100% scale. A 0% active share means the fund replicates the benchmark exactly (a true index fund); 100% means no overlap with the benchmark at all. Active share above 60% is the threshold commonly cited for genuinely active management; funds below 30-40% are sometimes called "closet indexers" because they collect active-management fees while delivering near-benchmark exposure. Distinct from active return (the actual outperformance) and tracking error (the volatility of that gap).
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Related terms
Active Management · AI Revenue · Anchoring Bias · Cost of Capital · Creation Unit · Days to Cover
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