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Overweight
(redirected from overweighting)

   Also found in: Dictionary/thesaurus, Medical, Legal, Wikipedia 0.01 sec.
Overweight
Usually refers to recommendation that leads an investor to increase their investment in a particular security or asset class. The increase is usually with respect to a benchmark. Suppose that U.S. equities compose 40% of the benchmark portfolio. If one thinks the U.S. will outperform, the investor may increase the exposure to U.S. equity to more than 40%.

Overweight
1. See: Market outperform.

2. See: Overperform.

3. Describing a portfolio where one security or industry has too much representation. For example, an overweight portfolio may be overexposed to the financial industry, which means if the financial industry suffers a downturn the portfolio will decline in value more than other similar portfolios. See also: Diversification.


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I've not invested in situations that were favorably skewed, especially considering an overweighting in cash.
We hold an overweighting in industrial stocks, compared to the Standard & Poor's 500, for instance.
Given how things currently stand, we therefore prefer to recommend overweighting Asian and emerging market equities, rather than focus on the markets in the West where a lot of the good news is already priced in.
 
 
 
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