Individual stocks can see big Monday moves after a bullish or bearish article in the weekend edition of Barron’s. Now a new ETF lets investors buy a basket of stocks that are attractive to Barron’s writers.
ALPS on Tuesday launched the Barron’s 400 ETF (NYSEArca: BFOR).
The ETF tracks a rules-based index intended to give investors a vehicle for tracking the overall performance of a collection of companies with strong fundamentals based on a methodology jointly developed by Barron’s and MarketGrader.com, according to a press release.
“All index components are selected on the basis of their fundamental strength,” said Carlos Diez, president of MarketGrader.com. “The Barron’s 400 Index is built from the ‘bottom-up’ using a methodology that is quite different from most traditional market benchmarks.”
Companies are selected based on the strength of their fundamentals in growth, value, profitability and cash flow. Potential components are also screened for criteria including minimum market capitalization and liquidity. The index is equal-weighted.
Barron’s introduced the Barron’s 400 Index in September 2007. It appears weekly in the magazine’s “The Trader” column and is rebalanced semi-annually, in March and September.
All Barron’s 400 components are selected based on 24 fundamental indicators. The process is based on rigorous measures of financial health, including many favored by Barron’s writers.
BFOR charges an expense ratio of 0.65%.