enhanced indexing(redirected from Enhanced Indexes)
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A portfolio management strategy that mainly tracks a certain index but is designed to perform slightly better than that index. Typically, enhanced indexing involves holding roughly the same securities as the index in roughly the same proportion; however, the portfolio manager often overweights certain stocks or industries if he/she believes them to be undervalued. This process is called tilting. See also: Enhanced index fund.
A technique for making relatively small adjustments to an indexed portfolio in order to increase the return slightly above the return on the index. Employing enhanced indexing, the manager of an indexed portfolio may weight the portfolio slightly toward market sectors the manager feels are underpriced. See also sector neutral index fund.