indexing

(mechanical engineering) The process of providing discrete spaces, parts, or angles in a workpiece by using an index head.

(1) Creating indexes based on key data fields or keywords.

(2) Creating timing signals based on detecting a mark, slot or hole in a moving medium.

Download Computer Desktop Encyclopedia to your iPhone/iTouch

1. The adjustment of the weights of assets in an investment portfolio so that its performance matches that of an index.

2. Linking movements of rates to the performance of an index.

Investopedia Says:
1. Indexing is a passive investment strategy. An investor can achieve the same risk and return of an index also by investing in an index fund.

2. Types of rates that could be linked to the performance of an index are wage or tax rates.

Related Links:
Get to know the most important market indices and the pros and cons of investing in them. Index Investing
Despite appearances, not all funds of this type render the same return. Find out why before you invest! You Can't Judge an Index Fund by Its Cover
Indexes can track market trends, but they're not always reliable. Can you trust them? The ABCs Of Stock Indexes

1. weighting one's portfolio to match a broad-based index such as Standard & Poor's so as to match its performance-or buying shares in an Index Fund.

2. Tying wages, taxes, or other rates to an index. For example, a labor contract may call for indexing wages to the consumer price index to protect against loss of purchasing power in a time of rising inflation.