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Enhanced Indexing
(redirected from Enhanced index funds)

   Also found in: Wikipedia 0.01 sec.
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.


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Later this year, Paradigm plans to offer two enhanced index funds, one based on the small-cap stock indices, the Russell 1000 and the Russell 2000.
NextStep's independence and "advisor-friendly" business model - along with its ability to provide access to key investment options such as institutional class funds, a broad array of index and enhanced index funds, and exchange traded funds (ETFs) - make it an appealing choice for advisors and TPAs in need of low-cost and transparent investment options for their clients.
The majority of ProFunds are categorized by Lipper as enhanced index funds.
 
 
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