Definition of "underweight"

"It's a long-run trend of foreign investors -- typically being underweight the banking sector in Australia," Mr Baker said.

2011, Murdoch, S. Foreigners back for Aussie stocks, The Australian

Underweight reflects the body’s thinness, but the term does not necessarily imply the nature and causes of underweight.

1996, United States Institute of Medicine Committee on Scientific Evaluation of WIC Nutrition Risk Criteria, WIC Nutrition Risk Criteria: A Scientific Assessment, National Academies Press, page 110

Further, structured managers usually attempt to hit their lower targets by relying on a relatively large number of small active deviations (i.e., overweights and underweights).

2004, Bob Litterman, Modern Investment Management: An Equilibrium Approach, page 198

Consider a conventional long-only portfolio with underweights on holdings the investment manager does not like and overweights on holdings the manager does like.

2011, Peter L. Bernstein, Capital Ideas Evolving, page 230

Although the portfolio overweights the German market, it underweights German marks.

2009, Philip Lawton, Todd Jankowski, Investment Performance Measurement, page 419