overweight - when a portfolio holds more of an asset than in the <a href="https://quoteddata.com/glossary/index/">index</a>

Overweight is used as a relative term, generally to something neutral, generally an index and in the context of a<a href="https://quoteddata.com/glossary/benchmark/"> benchmark</a>.

The opposite is <a href="https://quoteddata.com/?post_type=rf_glossary&amp;p=21267&amp;preview=true">underweight</a>

See also <a href="https://quoteddata.com/?post_type=rf_glossary&amp;p=21270&amp;preview=true">neutral weight</a>
<h4>Example</h4>
Stock A is 10% of an index.  A portfolio holds 12% of Stock A.  The portfolio is overweight Stock A by 2%

Germany is 10% of the European Index. Investment manager likes Germany. Portfolio holds 12% and is 2% overweight
<h4>Outcome</h4>
If stock A's share price rises, the portfolio performs well relative to the index because it holds 2% more than the index

If German markets fall, the portfolio performs badly relative to the index because it holds 2% more than the index