# Portfolio Turnover

*Saving & Investing — Finicade finance glossary*

Portfolio turnover is the share of a fund's holdings traded in a year — 100% means the equivalent of the whole portfolio changed hands. High turnover generates trading costs the expense ratio doesn't capture and, in a taxable account, distributes realised capital gains you must pay tax on whether or not you sold anything. Index funds typically run under 10%; some active funds exceed 200%.

**Also known as:** turnover ratio, fund turnover

**Related terms:** [Expense Ratio](https://finicade.com/glossary/expense-ratio), [Capital Gains Tax](https://finicade.com/glossary/capital-gains-tax), [Buy and Hold](https://finicade.com/glossary/buy-and-hold), [Slippage](https://finicade.com/glossary/slippage), [Mutual Fund](https://finicade.com/glossary/mutual-fund)

Source: https://finicade.com/glossary/portfolio-turnover