un∙der∙weight (noun)

A term typically used by benchmark-oriented managers to compare the weighting of a stock or sector in their funds to the weighting in the index. Along with "overweight", one of the most commonly used words in the industry. Indicative of low Active Share.

See also: Closet Indexing.

Antonym: Overweight

The above term is taken from The Steadyhand Dictionary, which is designed to help you sift through and make sense of the investment industry's dialect. Think of it as the little black book of investing.