Endekspõhises

Endekspõhises is an Estonian term that translates to "index-based" or "based on an index." It is a descriptive phrase used in various contexts, primarily in finance and economics, to indicate that something is determined or calculated by reference to a specific index.

In finance, an index-based investment strategy, such as an index fund or ETF, aims to replicate the performance of a particular market index, like the Nasdaq or the S&P 500. The fund's holdings are structured to mirror the constituents of the chosen index in their respective weightings. This approach is contrasted with actively managed funds, which aim to outperform an index through stock selection and market timing.

Economically, economic indicators or policies can be described as index-based if their calculations or adjustments rely on a price index, such as the Consumer Price Index (CPI), or another relevant statistical measure. For example, wages or pensions might be adjusted annually in an index-based manner to account for inflation, ensuring their purchasing power remains relatively stable over time. The phrase signifies a systematic and objective method of calculation tied to a recognized benchmark.