Barron's 400 Index


Base Date:

December 31, 1997

No. of Components:

400

Minimum Market Cap:

USD $250 million

Minimum Daily Avg. Liquidity:

USD $2 million

Sector Limit:

20% (80 companies)

Geographic Exposure:

United States

Rebalance Frequency:

Semi-annual

Underlying Universe:

Companies domiciled in the North America, excluding Canada, listed in U.S. exchanges


Methodology


Selection
All index constituents are selected on the basis of their fundamental strength as measured by MarketGrader’s overall grade. Built on a scale between 0 and 100, our Overall Grade is based on our 24 fundamental indicators, which are broken down into four analytical categories: Growth, Value, Profitability and Cash Flow. All of our indicators and our overall grades are calculated daily for all companies under coverage.


Equal Weighting
All 400 index components are equally weighted in the index at each semi-annual rebalance. This prevents a small minority of very large companies from steering the index, while giving smaller issues equal opportunity to contribute to the Barron’s 400’s overall performance. By definition, then, each stock represents, after each selection, one quarter of once percent of the overall index. No weight modifications or adjustments are made to the portfolio between rebalance periods.


Liquidity
All index constituents must have a minimum float-adjusted market cap of USD $250 million and a minimum 3-month daily traded value of USD $2 million. At least 25% of all index components must have a market cap of at least USD $3 billion.


Diversification
No more than 20% of the index (80 companies) may belong to the same economic sector. REITs are altogether ineligible for selection.


Rebalance Discipline
The index is rebalanced twice a year, on the third Friday of March and September.

Strategy

The Barron’s 400 Index, or B400, was jointly developed by Barron’s and MarketGrader and introduced on the cover of the September 3, 2007 issue of Barron’s magazine. In Barron’s words, the index “collects the most fundamentally sound and attractively priced stocks from all corners of the market, using a proven and disciplined stock-selection process.” B400 does not strive to be a benchmark representing the overall U.S. equity market but rather a tool designed to give investors access to America’s most promising stocks.




Licensing Opportunities

156 Almeria Ave, Suite 201
Coral Gables, Florida 33134 USA
Phone (888) 529-1767
Licensing@marketgrader.com




Literature



Related Products

The Barron's 400 ETF (NYSE Arca: BFOR)


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