A method of enhancing the bioavailability of a lipid-soluble nutrient, such as DHA, arachidonic acid, tocopherol, and carotenoids, in a newborn or preterm infant is disclosed. In this method, the lipid-soluble nutrient is administered in a nutritional product (such as an infant formula) to a preterm or newborn infant. The nutritional product comprises (a) an effective amount of the lipid-soluble nutrient; and (b) a fatty component comprising a combination of: (i) at least 6 g/l predigested fat, wherein the predigested fat includes at least one of: monoglycerides, free fatty acids, or a combination of monoglycerides and free fatty acids, and (ii) at least 1.44 g/l phospholipid. A method of enhancing cognition in newborn or preterm infants utilizing the nutritional product is also disclosed.