<p>Index investing has come a long way, but the best<strong> </strong>actively managed funds continue to beat the S&P by a handy margin. So the wizards
of finance have gone to work, searching for ways to capture those extra profits while retaining the cost benefits of indexing. </p>
<p>The result? Intelligent indexing, also known as “fundamental” indexing. </p>
<p>This new breed of index funds doesn’t attempt to own the whole market or every company in a certain size range. Rather, intelligent index funds
buy a basket of stocks that pass certain tests for investment merit.</p>
<p>Proponents of intelligent indexing have launched a gaggle of exchange-traded funds<strong> </strong>that embody the concept. But do they live up to
expectations? And should you be investing in this new breed?</p>
