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 ?
Neuberger Berman runs strategies like this, which have the potential for enhanced index returns with around two-thirds of the volatility.
The reference indices from the Rogers International Commodity Enhanced index family track the futures contracts with differing maturities in the following commodities: gasoline (petrol), precious and industrial metals, energy, natural gas, gas oil, heating oil and WTI oil.
The ADBF aims to stimulate the development of African domestic bond markets through the provision of an innovative and efficient product in the form of an enhanced Index Bond Fund to broaden investor's participation,' said Charles Boamah, the bank finance vice-president and chairman of AFMI.
The indexed investment sector, including index mutual funds, enhanced index funds, exchange-traded funds (ETFs), and closet indexers, has experienced rapid growth over the past two decades.
My data-points screening below indicates that of those 26 funds, none, not even one, was an Index Fund or an Enhanced Index Fund, leaving all 26 as actively managed funds.
For clients that might consider a small cap fund, the Voth Nixon Group provides supplementary options which include: VNX Stock Selector Small Cap Fund (retail and Advisor share classes); VNX Small Cap Value (retail and Advisor share classes); VNX Small Cap Stock Fund; VNX Advisor Small Cap Fund; VNX Small Cap Growth Fund (retail and Advisor share classes); and VNX Small Cap Enhanced Index Fund.
These enhanced index funds have an active component: They're designed to accentuate some attribute the fund sponsor believes will improve results.
20 August 2013 -- German financial services firm Allianz's Minneapolis USA-based fixed index annuities provider Allianz Life Insurance Co of North America said it has launched two enhanced index allocations offering additional choices for retirement accumulation.
Russell Indexes and IdealRatings have introduced the Russell-IdealRatings Islamic Index Series, a newly enhanced index series for Shari'ah investors.
Some ETFs are managed actively, and others employ enhanced index strategies, says Kaye; some use derivatives and some even employ leverage to achieve a particular return objective.
Even the enhanced index managers are feeling the brunt.

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