W - Z

W

Weight Drift The deviation of an asset’s actual weight in a portfolio or index from its target allocation, caused by market price movements. Regular rebalancing corrects for weight drift.

Weighting Method The strategy used to assign relative importance to assets in an index. Common approaches include:

• Market Cap Weighted (proportional to market capitalization)

• Equal Weighted (each asset receives the same weight)

• Custom Rule-Based (allocation defined by specific criteria, e.g., volatility, liquidity, or thematics) (See Weighting Rules for details.)

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Y

Yield The earnings generated by an asset or investment strategy, typically expressed as an annualized percentage return. Yield can come from staking, lending, fees, or price appreciation.