Editing Index fund (section)

===Enhanced indexing===
[[Enhanced indexing]] is a catch-all term referring to improvements to index fund management that emphasize performance, possibly using [[active management]]. Enhanced index funds employ a variety of enhancement techniques, including customized indexes (instead of relying on commercial indexes), trading strategies, exclusion rules, and timing strategies. The cost advantage of indexing could be reduced or eliminated by employing active management. Enhanced indexing strategies help in offsetting the proportion of tracking error that would come from expenses and transaction costs. These enhancement strategies can be:
* Lower cost, issue selection, [[yield curve]] positioning.
* Sector and quality positioning and call exposure positioning.