Overweight
Definition
A position that is larger than its benchmark weight, reflecting a bullish view on the asset.
Explanation
In portfolio management, overweight/underweight/equal-weight express views relative to a benchmark. If technology is 30% of the S&P 500 and a portfolio holds 40% in tech, it is 10 percentage points overweight technology. Analyst stock ratings also use these terms: overweight (expected to outperform), equal-weight (expected to perform in line), underweight (expected to underperform). The degree of overweight reflects conviction — a 2% overweight is a mild tilt; a 10% overweight is a high-conviction bet.