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 ?
Our sample of passive institutional investors consists of 591 index funds, enhanced index funds, ETFs, and a number of closet indexers.
Vincent Costa, CFA, Portfolio Manager, and Head of Quantitative Equity Research, is responsible for leading the portfolio implementation effort for all equity index funds and enhanced index funds.
He is also a director of Enhanced Index Funds, an umbrella fund
The London-based bank attributed the asset increase to its expanding hedge fund business and its enhanced index funds.
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.
Fidelity Lowers Investment Minimums on 16 Index Funds and Six Enhanced Index Funds, And Reduces Expenses on Eight Index Funds to Among Lowest in Industry
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.
With an increasing number of individual investors seeking more institutional-like products for their portfolios, Fidelity strengthened its mutual fund offering by launching three new enhanced index funds: Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund and Fidelity Large Cap Growth Enhanced Index Fund.
The Fund is managed by MLIM's quantitative investment team led by portfolio manager Vincent Costa, who has over 18 years of investment experience in index funds, enhanced index funds and hedge funds.
Enhancement is provided by the EIP Overlay Fund, a market neutral Asia ex-Japan hedge fund, which has a captive stock lending arrangement with the Enhanced Index Funds, in return for a share of the positive performance of the hedge fund.
At the Web site, investors can access analysis and advice on mutual fund investment strategies, Y2K, index and enhanced index funds, taxes and expenses, technology funds, the best and worst funds at Vanguard and Fidelity and more.

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