Overweight
(redirected from overweighting)Also found in: Dictionary, Thesaurus, Medical.
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%.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved