Beta tilt
InvestingDefinition
Strategy of overweighting/underweighting beta in a portfolio relative to a benchmark. High-beta tilt amplifies bull-market returns; low-beta tilt dampens drawdowns.
Most active funds run mild beta tilts. Smart-beta and factor ETFs sometimes have explicit beta tilts (low-vol = low beta; momentum = high beta historically).
Most active funds run mild beta tilts. Smart-beta and factor ETFs sometimes have explicit beta tilts (low-vol = low beta; momentum = high beta historically).