Alpha
0050-en RE430 Financial Market Law As of 11.07.2026
The alpha describes the discrepancy between the investment return and the benchmark return as well as the title risk. Excess returns are generated by taking active risks. Such strategies take into account the fact that deviations from index performance may be possible (tracking error).
Deutsch
Alpha 0050-de
Das Alpha bringt einerseits die Überrendite eines Fonds zum Benchmark zum Ausdruck, anderseits auch das Titelrisiko. Überrendite wird erzielt durch das Eingehen von aktivem Risiko. Damit wird auch bewusst ein Abweichung von der Indexperformance in Kauf genommen (Tracking Error).
Suggested citation
Alpha (0050-en), in: LAWPEDIA®-Glossar, provided by LAWCONSULT AG, www.lawconsult.ch/lawpedia/en/alpha, as of: 11.07.2026 [accessed on …].
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