Investment Glossary · Quick read · No ads
Allocation Effect
The short answer
The part of portfolio performance explained by overweighting or underweighting asset classes, sectors, or regions relative to a benchmark.
What is Allocation Effect?
The part of portfolio performance explained by overweighting or underweighting asset classes, sectors, or regions relative to a benchmark.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
