Can You Spot the Closet-Indexer? Introducing Visual Active Share

Can You Spot the Closet-Indexer? Introducing Visual Active Share

June 23, 2016 Robo Advisor, Tool Updates
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(Last Updated On: June 23, 2016)


We’re working on some internal tools to help investors make more informed decisions.

The primary challenge that investors face is understanding what they are actually buying versus what they are being sold.

Active share and high level portfolio statistics (e.g., holdings or 3×3 valuation/size charts) are marginally useful.

2016-06-23 13_22_14-2016-WB-2504 Alpha Architect Can you spot the closet indexer

But what is really useful is a holdings-level characteristics-focused visualization tool that a marketing department cannot hide behind. Our tool will help you quickly and intelligently ascertain what you are buying versus what you are being sold.

Next week I’ll walk through the concept via an Interactive Brokers webinar.

If you’d like to check out, the details are below. Look forward to seeing you on the webinar and answering any questions you might have regarding the tool.

So How Do I Sign Up for the Webinar?

Date and Time: Monday, June 27, 2016 12:00 pm, Eastern Daylight Time (New York)

Additional Information:

Global call-in numbers:
Toll-free dialing restrictions:

Access code: 717 218 697

Event Number: 717 218 697

Note: This site provides NO information on our value investing ETFs or our momentum investing ETFs. Please refer to this site.

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Please remember that past performance is not an indicator of future results. Please read our full disclosures. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Alpha Architect, its affiliates or its employees. This material has been provided to you solely for information and educational purposes and does not constitute an offer or solicitation of an offer or any advice or recommendation to purchase any securities or other financial instruments and may not be construed as such. The factual information set forth herein has been obtained or derived from sources believed by the author and Alpha Architect to be reliable but it is not necessarily all-inclusive and is not guaranteed as to its accuracy and is not to be regarded as a representation or warranty, express or implied, as to the information’s accuracy or completeness, nor should the attached information serve as the basis of any investment decision. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Alpha Architect.

Definitions of common statistics used in our analysis are available here (towards the bottom)

About the Author

Wesley R. Gray, Ph.D.

After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes,, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.