Underweighted


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Underweight

1. Describing a portfolio or fund with too little exposure to an industry, sector, or something else. See also: Overweight.

2. See: Underperform.

Underweighted.

When you own less of a security, an asset class, or a subclass than your target asset allocation calls for, you are said to be underweighted in that security, asset class, or subclass.

For example, if you have decided to invest 30% of your portfolio in fixed-income investments, but the actual holdings account for only 10% of your portfolio, you are underweighted in fixed income.

In another use of the term, a securities analyst might recommend underweighting a particular security, which you might reasonably interpret as advice to sell.

References in periodicals archive ?
The fund remains underweighted in Argentina, the resignation of Finance Minister Cavallo, architect of Argentina's convertibility plan, adds another element of risk.