Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hello James and crew, Whilst I understand the meaning of being either under or over weight a particular stock is there a quick answer as to how it's calculated. eg If its a company in the ASX200 is it the holding percentage within the ASX 200, ASX as a whole or its ASX Sector. I guess the second part of the question would be, where do find the information for the calculation. Thanks Geoff
Hi Geoff,
The different sectors of the market have different weightings. If our exposure to that sector is above the market weighting, then we are overweight, and below that market weighting we are underweight. The same is true for stocks. For example, BHP has a 10.5% weighting in the ASX 200, our Flagship Growth Portfolio holds 9% making us slightly underweight.
A good (free) place to find this information is on the Betashares A200 page. This ETF tracks the ASX 200 and has information on its constituents, both at the sector and stock level: Click Here
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