clo∙set in∙dex∙ing (verb)

The practice of a fund manager building a portfolio that closely resembles an index for fear of losing assets or his job if performance fails to stay close to the index. Associated with low conviction, low active share, and underperformance.

Antonym: Undexing.

The above term is taken from The Steadyhand Dictionary, which is a collection of investing terms and colloquialisms. Some are widely used, some aren’t used enough, and some are seen only in Steadyhand publications. Without a doubt, many are misunderstood.

A high level grasp of these terms will help make you a better investor, not to mention a stirring conversationalist.