ABSTRACT
As the S&P 500 continues to frequently beat traditional active managers, plan sponsors increasingly accept passive strategies as the core component of their overall equity allocation. Not coincidentally, in recent years enhanced index strategies have become a popular substitute for traditional active strategies. Defined by objective, true enhanced index managers minimize the risk of straying far from their benchmark by, in effect, imitating that benchmark. At the same time, they claim to add value to that benchmark.
