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sector neutral index fund

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Financial Dictionary

sector neutral index fund

A mutual fund that maintains a portfolio with sector weights identical to a particular stock index while attempting to earn returns higher than the index by managing stocks within each sector. A sector neutral index fund is a special kind of enhanced index fund. See also enhanced indexing.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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