Financial Services Review | 2010
Authors:
DOI: 10.61190/fsr.v19i2.4970
Journal: Financial Services Review
Year: 2010
Publisher: Academy of Financial Services
Document Type: Article
Open Access: All Open Access; Gold Open Access
Cited by: 12
Uninformed investors would expect enhanced index funds (EIFs) to live up to their name and enhance portfolio performance. This updated and thorough comparison of EIFs and pure index funds finds that EIFs, as a whole and in domestic stock fund categories, appear to have performed worse than their pure index funds counterpart with lower returns, higher risks and lower risk-adjusted returns. EIFs behaved more like actively managed funds, with higher expense ratios and turnover rates. Investors should be wary of sales pitches hyping the value of EIFs! © 2010 Academy of Financial Services. All rights reserved.
Enhanced index funds; Index funds; Portfolio performance; Risk-adjusted return