Enhanced Index Fund - EIF
- A mutual fund that tracks a stock market index, but with certain modifications in place to allow for more equivalent position sizes, the exclusion of certain securities, or the use of leverage, all with the goal of beating the return of the tracking index. These types of funds are actively managed, and will often use the S&P 500 Index as the tracking index.
Enhanced index funds trade with the "index fund" title, but to be fair, that's where the similarity usually ends. True index funds have consistently lower fees, lower turnover and passive management. Enhanced index funds, on the other hand, are actively managed to beat the return of the tracking index. This approach causes relatively higher fees and turnover than the traditional index fund. While proponents of enhanced index funds cite better total return performance as a plus for this type of fund, investors need to be aware that using leverage and active management also increases risk, at least as compared to a conventional index fund.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Index fund — An index fund or index tracker is a collective investment scheme (usually a mutual fund or exchange traded fund) that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held… … Wikipedia
Enhanced indexing — In finance, enhanced indexing is a catch all term that describes strategies employed to outperform traditional indexing. Enhanced indexing attempts to generate modest excess returns compared to index funds and other passive management… … Wikipedia
Enhanced Indexing — An investment philosophy that attempts to amplify the returns of an underlying portfolio or index fund while also minimizing the effects of tracking error. This type of investing is considered a hybrid between active and passive management and is … Investment dictionary
Exchange-traded fund — An exchange traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs… … Wikipedia
Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… … Wikipedia
Money fund — Money funds (or money market funds , money market mutual funds ) are mutual funds that invest in short term debt instruments. Explanation Money market funds, also known as principal stability funds, seek to limit exposure to losses due to credit … Wikipedia
Money market fund — This article is about the type of mutual fund. For the type of bank deposit account, see Money market account. A money market fund (also known as money market mutual fund) is an open ended mutual fund that invests in short term debt securities… … Wikipedia
CBOE S&P 500 BuyWrite Index (BXM) — The CBOE S P 500 BuyWrite Index (ticker symbol BXM) is a benchmark index designed to show the hypothetical performance of a portfolio that engages in a buy write strategy. DescriptionsThe term buy write is used because the investor buys stocks… … Wikipedia
United Nations Children's Fund — Infobox UN name = image size = 250px caption = UNICEF Logo type = Fund acronyms = UNICEF head = Ann Veneman status = Active established = 1946 website = http://www.unicef.org parent = ECOSOC commons = United Nations footnotes = is called… … Wikipedia
CBOE DJIA BuyWrite Index (BXD) — The CBOE S P DJIA BuyWrite Index (ticker symbol BXD) is a benchmark index designed to show the hypothetical performance of a portfolio that engages in a buy write strategy on the Dow Jones Industrial Average (DJIA). DescriptionsThe term buy write … Wikipedia
OPEC Fund for International Development — The OPEC Fund for International Development (OFID) is a multilateral development finance institution established in 1976 by the Member Countries of the Organization of the Petroleum Exporting Countries (OPEC). Its objective is to reinforce… … Wikipedia