Despite its popularity, passive investing isn’t offering investors the best available exposure to the equity markets. We argue that enhanced indexing may be an even better alternative. It is supported by theory and evidence, allows for better ESG integration, and contributes to a liquid and efficient market.
Passive investing has several advantages, such as exposure to the market premium, predictable risk-return characteristics and low fees. Since 2004 our enhanced indexing strategies offer all the advantages of traditional passive investing, but strive to generate better returns than passive vehicles after costs, and integrate sustainability criteria as well as the latest academic research.
Wilma de Groot, Head of Core Quant Equities:
"Enhanced Indexing is a proven alternative to passive investing as it offers all the benefits of this popular investment style while compensating for its many disadvantages"
