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.