The Barron’s 400 ETF (NYSE Arca: BFOR) Undergoes Semi-Annual Rebalance
Denver, CO (PRWEB) September 23, 2013 -- The Barron’s 400 ETF, which seeks to track the Barron’s 400 Index (B400), has completed its semi-annual rebalance based on the reconstitution of its underlying benchmark. The rules-based Barron’s 400 Index, which was designed to give investors a means of tracking some of America’s highest performing companies based on the strength of their fundamentals, was jointly developed by Barron’s and MarketGrader.
Financial companies showed the biggest increase in sector representation and now account for 18.25% of the reconstituted index. Consumer Discretionary and Industrials at 20% and 18%, respectively, complete the top three sectors. Health Care and Technology suffered the largest reductions and now account for 8.5% and 13.75% of the
index respectively.
The largest additions by market cap to B400 were Berkshire Hathaway, Visa, Comcast, Schlumberger and U.S. Bancorp.
The largest deletions by market cap were Exxon Mobil, Chevron, Procter & Gamble, Philip Morris International and Intel.
There were 62 companies selected to the index for the first time ever, including Berkshire Hathaway, Shutterstock, Ubiquity Networks, United Rentals and Wisdomtree Investments.
Following the rebalance on Friday, September 20, 2013, the average market cap of B400 was $17.8 billion and the median market cap was $3.8 billion. In total 178 companies were added to the index, a turnover rate that was largely
in line with the historic average of 42%. The stocks selected for inclusion are equally weighted at each semi-annual rebalance.
Among current index constituents, the ten companies with the most selections to B400 are Microsoft, Wal-Mart, Amgen, Bed Bath & Beyond, Home Depot, IBM, Nike, Oracle, Pepsi and Coach.
MarketGrader uses 24 proprietary measures of growth, value, profitability and cash flow to grade nearly all investable U.S. stocks, the underlying universe from which B400 is selected.
“The Barron's 400 Index was designed to select some of America's most promising companies,” said Carlos Diez, MarketGrader’s president and founder. “Our adherence to a consistent growth-at-a-reasonable price selection strategy is a key to B400’s ongoing results.”
The Barron’s 400 ETF (BFOR), which was launched on June 4th, 2013 under the ALPS ETF Trust, saw its market price and net asset value rise 5.43 percent and 4.80 percent, respectively, during its first 90-day period since launch. Additional information about the ETF can be found at http://www.barrons400etf.com.
Performance
Total Returns as of 08/31/13 1 Month Since
Inception1 Since Inception1
to 06/30/13
Barron’s 400SM ETF (NAV)2 -2.12% 3.32% -1.00%
Barron’s 400SM ETF (Market Price)3 -2.04% 3.48% -0.92%
Barron’s 400 IndexSM (Benchmark)4 -2.07% 3.49% -0.97%
Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than actual data quoted. Call 1.855.724.0450 or visit http://www.barrons400etf.com for current month end performance. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
1 Fund inception date of 06/03/2013.
2 NAV is an exchange-traded fund’s (ETF) per-share value. The per-share dollar amount of the fund is derived by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding.
3 Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times.
4 The Barron’s 400 indexSM, calculated by NYSE Euronext or its affiliates, measures the performance of a diversified group of U.S. companies selected in part based on fundamentals-related rules-based criteria. The index includes companies that have scored highest according to fundamentals-related rankings calculated by MarketGrader. Additional rules-based screening provides for sector and market cap diversification. The Index has been licensed to MarketGrader Capital LLC for use with the Barron’s 400 IndexSM. You cannot invest directly in an index.
About ALPS
ALPS provides customized asset servicing and asset gathering solutions to the financial services community through an entrepreneurial culture based on the commitment to “Do Things Right.” Founded in 1985, ALPS continues to actively promote all of its various business segments, from asset servicing through ALPS Fund Services, Inc. to asset gathering through ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc. and ALPS Advisors, Inc. Headquartered in Denver, with offices in Boston, New York, Seattle, and Toronto, ALPS, a wholly-owned subsidiary of DST Systems, Inc., today represents more than 400 employees, over 200 clients, and an executive team that has been in place for more than 18 years. For more information about ALPS and its services, visit http://www.alpsinc.com. Information about ALPS products is available at http://www.alpsfunds.com.
Important Disclosures
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1.855.724.0450 or visit http://www.barrons400etf.com. Read the prospectus carefully before investing.
There are risks involved with investing in ETFs including the loss of money. Additional information regarding the risks of this investment is available in the risks section of the prospectus.
Barron’s 400SM ETF shares are not individually redeemable. Investors buy and sell shares of the Barron’s 400SM ETF on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 50,000 shares.
The Fund is new and has limited operating history.
ALPS Portfolio Solutions Distributor, Inc., 1290 Broadway, Ste. 1100, Denver, CO 80203 is the distributor for the Barron’s 400SM ETF.
“The Barron's 400 IndexSM” is calculated by NYSE Euronext or its affiliates and published by MarketGrader. “Barron's®," "Barron's 400SM” and "Barron's 400 IndexSM" are trademarks or service marks of Dow Jones & Company, Inc. or its affiliates and have been licensed to MarketGrader. One cannot invest directly in an index.
Barron’s© is a service mark of Dow Jones & Company, Inc. and has been licensed to MarketGrader Capital LLC for use with the Barron’s 400 IndexSM and sublicensed for certain purposes by ALPS Advisors, Inc. ALPS’s Barron’s 400SM ETF based on the Barron’s 400 IndexSM, is not sponsored, endorsed, sold or promoted by Dow Jones, or its affiliates, and Dow Jones and its affiliates make no representation regarding the advisability of investing in such product.
ALPS, A DST Company, and ALPS Portfolio Solutions Distributor, Inc. are not affiliated with Barron’s or MarketGrader.
Contact:
Patricia Lobato
ALPS, A DST Company
1290 Broadway, Suite 1100
Denver, CO 80203
303.623.2577
Patricia Lobato, ALPS Inc., http://www.barrons400etf.com, 303 623-2577, [email protected]
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