Tilt Fund


DEFINITION of 'Tilt Fund'

A fund developed when an institution compiles a core holding of stocks that mimic a benchmark type index such as the S&P 500 to which additional securities are added to help tilt the fund toward outperforming the market. These funds are typically used by major investors in an effort to enhance overall investment returns. The right mix/tilt of stocks provides both safety and performance.


Managers use tilt funds to obtain accelerated returns from their investments while maintaining a certain level of safety. Therefore, while tilt funds have the potential to outperform the broader market, the risk they take on to achieve superior returns is considered to be fairly low.

  1. Benchmark

    A standard against which the performance of a security, mutual ...
  2. Outperform

    An analyst recommendation meaning a stock is expected to do slightly ...
  3. Core Holding

    A long-term investment that forms the foundation of an investor's ...
  4. Equity Risk Premium

    The excess return that investing in the stock market provides ...
  5. Alpha

    Alpha is used in finance to represent two things: 1. a measure ...
  6. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
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