Active share is the percent of the portfolio that genuinely differs from the benchmark by weight. Below 60 percent is the line academics call closet indexing. If 7 of the top 10 names match the index in the same proportions, the answer is below 60. Most factsheets do not publish active share. Ask the AMC directly. If they cannot tell you, that is itself the answer.

Divide TER by active share to get the real cost of the active bet. 1.50 percent on 40 active share works out to roughly 3.75 basis points per active point. The other 60 percent is being charged the same rate but is just replicating an index a passive fund delivers for around 0.20. The honest comparison is fee per unit of conviction, not fee in isolation.