Factor tilts

Where the portfolio leans — value, growth, quality, profitability, size, leverage, yield and volatility — against a broad large-cap average.

Formula

Tilt = position-weighted average of the metric over the holdings that have it
vs market = tilt ÷ reference − 1

Inputs

  • References. Forward P/E 19, revenue growth 6%, ROIC 11%, operating margin 13%, market cap $1.1T (cap-weighted), debt/equity 95, yield 1.3%, volatility 18%.

How to read it

+50% on forward P/E means the portfolio pays half as much again as the market's multiple. Coverage says how much of the portfolio each tilt was measured on.

How to use it

Reveals concentration a sector chart misses — a 'diversified' portfolio that is all high-multiple growth, for instance.

Limitations

The references are fixed round numbers for scale, not a live index; a tilt measured on a small share of the portfolio is weak evidence.

In Kereon

Portfolio · Analytics. Weighted by invested position size.

Also called: factor exposure, tilts, style, value tilt, growth tilt.

Related terms

The whole glossary · Investing tools