What is Indexing
 

Indexing is the practice of compiling economic data into a single metric or comparing data to such a metric. There are many indexes in finance that reflect on economic activity or summarize market activity—these become performance benchmarks against which portfolios and fund managers are measured.

What is Indexing
 

Key Takeaways

Indexing is the practice of compiling economic data into a single metric or comparing data to such a metric. There are many indexes in finance that reflect on economic activity or summarize market activity—these become performance benchmarks against which portfolios and fund managers are measured.