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Glite Dictionary
🦴 Too thin 📉 Less invested
underweight

underweight

1 7.2
Having less money invested in a stock or sector than the benchmark
  • adjective
  • /ˌʌndərˈweɪt/
  • Specialized
translation icon : subponderado
  • Underweight small value companies.
  • underweight rating

Examples

  • I mean, I have my bets placed, but anyway, so they talk about being short and underweight real estate.

  • Her investment strategy involved being underweight in technology shares compared to the index fund.

  • "Underweight" appears to have a different meaning for men and women.

    Academic text (2002)

  • Conclusion: I bought Caterpillar because it is the market leader in the industrial sector and my portfolio was underweight in industrial stocks.

    Blog text (10)

  • Homebuilding (underweight): The stock price index for underweight rated

    Blog text (23)

  • Gold and Silver—underweight or avoid.

    Blog text (12)

  • The analyst maintained an underweight position on the stock, suggesting investors should limit their exposure.

  • Our research indicates that the portfolio is currently underweight in emerging markets relative to its benchmark.

Synonyms

underexposed
vsunderweight
  • Specialized
1 6.5

Having too little money invested in a market or asset

describes holding a smaller portfolio allocation than a benchmark or target

Antonyms

overweight
  • Specialized
4 7.0

Having a larger share in a portfolio than the market

How Weighted

overweight
  • Specialized
4 7.0
underweight
  • Specialized
1 7.2

Surface Forms

underweight positive
underweighter comparative
underweightest superlative

Morphology

underweight = weight (semi-transparent) = under + weight

Formally 'under' + 'weight' is clear, but 'weight' here is a domain-specific financial sense (allocation/importance), so knowledge of general 'weight' may not be sufficient for all learners.

Etymology

Underweight in finance keeps the same parts: under- 'below' and weight 'share' or 'amount', so it means having a 'smaller' share in a portfolio than the usual or target amount. That's why being underweight on a stock or sector means the fund holds less of it than normal.