The report compares the weightings of securities in a portfolio with those of its benchmark and can be used to assess the degree of a portfolio’s active management.
Active share is one of many characteristics an investor may find useful during the fund selection process. Vanguard cautions against focusing solely on a single data point in investment decisions. Other important factors to consider include the fund’s objective and strategy, cost, and pre- and post-tax returns over the long term, along with the investor’s personal objectives, time horizon, and risk tolerance.
All investing is subject to risk, including the possible loss of the money you invest.