> For the complete documentation index, see [llms.txt](https://docs.dexponent.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dexponent.com/dtf-types/index-dtfs.md).

# Index DTFs

An Index DTF holds a basket of supported assets with target weights. LPs get basket exposure through one DTF position.

## How it works

The manager sets the basket and target allocation. Prices move, so actual weights drift. A rebalance trades assets to move the basket toward its targets, subject to available liquidity and execution limits.

A supported target change can require a proposal and activation delay. Activating new targets and executing the rebalance are separate actions. Do not assume rebalancing happens automatically on a fixed schedule.

## Example

An illustrative 10,000 USDC basket targets 60% asset A and 40% asset B. If market moves take the basket to 70% A and 30% B, a rebalance would sell some A and buy B to move toward 60/40. Actual amounts depend on prices, costs and the executable quote.

These are example assets and allocations, not a listed DTF or a recommendation.

## What to check

Review the basket, target weights, actual holdings, manager's rebalance approach, fees and trading liquidity. An index does not guarantee diversification if its assets move together.

LP deposits and withdrawals follow the [LP guide](/stakeholders-guide/liquidity-providers.md). Managers should follow the [manager guide](/stakeholders-guide/farm-owners-guide.md) and account for [execution costs](/fees-and-costs.md).