This article was originally published on ETFTrends.com.
The Barron’s 400 ETF (BFOR) and its underlying benchmark, the widely observed Barron’s 400 Index (B400), recently completed its semi-annual rebalance, increasing exposure to several sectors.
The Barron’s 400 Index takes 400 stocks from the broader MarketGrader U.S. Coverage Universe by using a methodology that selects components based on the strength of their fundamentals in growth, valuation, profitability and cash flow, and then screens components for certain criteria regarding concentration, market capitalization and liquidity.
New additions to BFOR's underlying index include Visa (V), Intel (INTC), Lowe’s (LOW), Caterpillar (CAT), EOG Resources (EOG), CSX (CSX) and Synchrony Financial (SYF), according to a statement.
Notable deletions from the index include Verizon (VZ), Boeing (BA), AbbVie (ABBV), Walt Disney (DIS), Time Warner (TWX) and Celgene (CELG).
More BFOR Updates
BFOR also saw some important sector changes following the latest rebalance.
“On a sector basis, Consumer Discretionary, Energy, and Materials saw the biggest net gains in number of constituents, adding 9, 4 and 3 components, respectively,” according to the statement.
As of the end of the second quarter, those three sectors combined for about a third of BFOR's weight, according to issuer data. Financial services and industrials remain the largest sector weights in BFOR. Those sectors combined for over 36% of the fund's weight at the end of the second quarter. The median market value of BFOR's holdings at the end of the second quarter was $4.13 billion. None of the ETF's holdings exceed weights of 0.28%.
“Tying for third largest sector weighting were Consumer Discretionary and Technology, the latter shedding a further 4 members, with 63 constituents each. Both remain below their 10-year average allocation in B400 of 73 and 69 companies, respectively,” according to the statement.
BFOR is up 9.11% year-to-date.
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