What is Portfolio Turnover?

Portfolio turnover measures how much of a portfolio is replaced over a period, usually a year. A turnover of 100% means trades equal to the whole portfolio's value; 250% means the portfolio was effectively replaced two and a half times.

Why Portfolio Turnover matters

Every trade pays a spread and often a commission, so higher turnover means higher costs that compound against you.

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Lessons that use this term

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