Hello, I was wondering when investing into a pie, you get the option to invest by targets or to prioritise overweight/underweight stocks, my question is what are overweight and underweight stocks, I can’t find an explanation that I understand.
Could we please have another option when investing into a pie that prioritises stocks that are down, meaning we get the most shares for our money and it helps us average down.
Thanks.
P.S if overweight and underweight means exactly this, then please disregard this post.
When you set up a pie, you set desired percentages. When stocks go red they are worth less than the percentages because their values fall - this is underweight. They also go green and their values become more of a share of the pie - that’s overweight.
This exists. Change the dropdown to self-balancing when you deposit into the pie.
But be aware this is the gardening equivalent of cutting the flowers and watering the weeds.
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cutting the flowers and watering the weeds
What does this mean, why would it be bad to average down?
It’s not automatic, sometimes its better to water flowers rather then weeds. So having an automatic process that only waters weeds, isn’t always the best plan.
So, overweight and underweight just mean how much of a stock is in the pie compared to the benchmark. Overweight means you’ve got more of it than the benchmark suggests, and underweight means less.
The idea of prioritizing stocks that are down is actually pretty good, would definitely help get more shares for your money and average down.