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Layer 4 · Professional CertificationsCFA® Level 3Exam: CFA Institute

CFA® L3 — Portfolio Construction

Active vs passive choice, factor investing, manager selection, ETF use, taxes, and the mechanics of building and rebalancing a real portfolio.

35 hours of content1 chaptersFree during Phase 1

Quick info

Layer
Professional Certifications
Track
CFA® Level 3
Estimated hours
35 hrs
Chapters
1
Exam body
CFA Institute
Cost on Trustner
Free
Full course material live

Every chapter below has Foundation, Deep Dive, and Advanced material — read in any order, expand each chapter to see the full content.

About this course

Portfolio construction translates SAA into actual security positions. CFA L3 covers active vs passive, risk budgeting, factor tilts, and implementation. ~5-10% weight.

Who this is for

  • CFA L3 candidates.
  • Portfolio managers and traders.
  • Multi-asset strategists.

What you'll learn

  • Active vs passive — pure indexing, factor tilting, fundamental indexing
  • Risk budgeting — total, systematic, idiosyncratic
  • Style integration
  • Implementation: cash flows, benchmarking

Course material — 1 chapters

Each chapter offers three tiers — Foundation for the core concept, Deep Dive for worked examples and practitioner depth, and Advanced for edge cases and exam tips. Click any chapter to expand.

  1. 1
    Reading 1

    Active equity portfolio construction

    • Approaches: top-down vs bottom-up
    • Style classification (value, growth, blend)
    • Portfolio construction methods (concentrated, diversified, factor-based)
    • Long-only vs market-neutral
    ✓ Full chapter — read, examples, FAQ, MCQs

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