A fund that uses futures to hold the S&P 500 Index and invests the remainder in bonds would be an example of:
A) a value index fund.
B) a derivatives index fund.
C) an enhanced index fund.
D) an active index fund.

Question

Quizplus · Accepted Answer

An enhanced index fund uses derivatives like futures to replicate the index and invests the remaining assets in other securities, such as bonds, to potentially enhance returns.

A Fund That Uses Futures to Hold the S&P 500