enhanced indexing

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Enhanced indexing

Also called indexing-plus, an indexing strategy whose objective is to exceed or replicate the total return performance of some predetermined index.

Enhanced Indexing

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.

enhanced indexing

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.
References in periodicals archive ?
Source is focused on delivering value to investors through a combination of core and enhanced indices, strong partnerships and active trading.
The 'Additional Information' document provides more detailed comparisons between the current and the enhanced indices with respect to sector, industry group and country weights as well as to risk characteristics on pages 10 to 16, and 25 to 28.
Since launch in April 2009, Source has focused on delivering incremental value to European ETP investors through a combination of enhanced indices, strong partnerships, improved structuring and active trading.
Proposed Enhancements Build on Attractive Features of the Existing Indices The enhanced indices will retain attractive features of the existing Standard Indices.

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