What is the meaning of 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%.

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APABarry Goldsmith. (2010). underweight. Retrieved September 21, 2026, from http://smartdefine.org/underweight/definitions/1165845
ChicagoBarry Goldsmith. 2010. "underweight" http://smartdefine.org/underweight/definitions/1165845 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, underweight, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/underweight/definitions/1165845>.
MLABarry Goldsmith. "underweight" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/underweight/definitions/1165845>
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