- underweight
- Usually refers to recommendation that leads an investor to reduce their investment in a particular security or asset class. The reduction 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 underperform, the investor may reduce the exposure to U.S. equity to less than 40%. Bloomberg Financial Dictionary
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underweight un‧der‧weight [ˌʌndəˈweɪt◂ ǁ -ər-] adjectiveFINANCE used to show that an investor has less of a particular investment than usual, or less of it than they should have:• Investors would be wise to be underweight in the German banking and retailing sectors at the moment.
— underweight verb [transitive]* * *
underweight UK US /ˌʌndəˈweɪt/ adjective STOCK MARKET► used to describe portfolios that include too little of a particular type of share, bond, etc.: underweight in sth »He's seriously underweight in Japanese bonds, which make up only 8% of his portfolio.
an underweight rating/recommendation »They initiated coverage of both stocks with an underweight rating.
Financial and business terms. 2012.