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.

Notes:

All investing is subject to risk, including the possible loss of the money you invest.