is indexing a smart way to invest 
indexing is a good investment strategy for many people it creates a diversified portfolio and it usually requires lower fees and expenses than an actively managed fund it also mimics the broader stock market which over the long run will generally perform better than any single person picking stocks the bottom lineindexing refers to compiling economic data into a single metric it can also mean comparing data to such a metric in order to measure its change or performance in economics there are many indexes that summarize or reflect economic and market activity for example cost of living adjustments to social security payments are indexed to inflation in investing indexes are benchmarks that are used to measure the performance of fund managers and portfolios it can also refer to a passive investing strategy that aims to mimic broad market returns rather than picking individual stocks 