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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
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.
Our sample of passive institutional investors consists of 591 index funds, enhanced index funds, ETFs, and a number of closet indexers.
Second, we repeat cross-sectional analysis using a sample of passive index funds and ETFs, excluding discretionary index funds such as enhanced index funds and closet indexers.
However, we do not restrict our sample to pure index funds and ETFs, but also include enhanced index funds and closet indexers to construct a more complete measure of passive ownership.
High Yield bond space, we find no index or enhanced index funds showing up in the screening.
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.
These enhanced index funds have an active component: They're designed to accentuate some attribute the fund sponsor believes will improve results.
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.
My data-points screening below indicates that of those 49 funds, only one was an Index Fund, and zero were Enhanced Index Funds, leaving 48 actively managed funds.
My data-points screening below indicates that of those 68 funds, only one was an Index Fund, and none were Enhanced Index Funds, leaving 67 actively managed funds:
My data-points screening below indicates that of those 79 funds, 30 are Index Funds and six are Enhanced Index Funds, leaving 43 actively managed funds:
Second, Morningstar defines Enhanced Index Funds as funds similar to index funds, which attempt to match an index's performance, but are unlike index funds since they attempt to better the index by either adding value or reducing volatility through selective stock picking.

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