Index tracking has grown in popularity as a low-cost and reliable means to replicate the performance (i.e beta) of stock markets. But traditional index tracker funds can underperform the index once fees and transaction costs are deducted. By identifying and targeting specific stock characteristics, or factors, that have historically been shown to be key drivers of a stock’s price, enhanced index strategies can outperform the market at a lower cost than active management whilst applying similar levels of risk to traditional passive investing.