overweight investment & finance definition

Having a large percentage of a portfolio invested in a particular sector. For example, an analyst may tell investors to overweight their holdings of healthcare stocks, meaning that healthcare stocks should take up a larger percentage of the investors’ portfolios than they do on a broad market index, such as the S&P 500. The term also may be applied to individual stocks. Overweight contrasts with underweight, which indicates that a portfolio has a disproportionately small amount of funds in a particular stock or sector.