Top Holdings

Top Holdings

The highest volume of publicly traded assets held by an individual, company or fund. These publicly traded assets may include company stock, mutual funds or other investment vehicles. Top holdings are typically determined by what percentage their value represents within the portfolio. By looking at the top holdings of, say, a mutual fund, investors can often gain insights into the trading strategy that is being employed.

Contrary to what many people believe, the Dow Jones Industrial Average does not provide a summary of market activity. Rather, it offers a snapshot of the day's market action and, as a result, it can sometimes be unduly influenced by extremely good or extremely poor performances by one or more of its top holdings.


Investment dictionary. . 2012.

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