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.