If S&P 500 index funds are beating 90 percent of the mutual funds available, why are fund companies creating so-called "enhanced" mutual funds? Does it mean that index funds are not cutting it any more in a market where Internet funds are returning over 100 percent?

According to fund executives and brokers, "enhanced" index funds - index funds that try to beat the index they follow - are not being created to replace pure index funds. Rather they are being created to offer investors a new and different product.

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