Concentration risk has been persistent in the U.S. market in recent years. Narrow leadership in the hands of a few megacap, AI-linked stocks has pushed the S&P 500 into levels of concentration not seen in many years.
In an investment landscape dominated by market-cap-weighted benchmarks like the S&P 500, the Barron's 400 ETF (BFOR) offers a different path. BFOR tracks an equally weighted index of 400 companies in the United States, selected based on a Growth at a Reasonable Price methodology also known as GARP.
In an investment landscape dominated by market-cap-weighted benchmarks like the S&P 500, the Barron's 400 ETF (BFOR) offers a different path. BFOR tracks an equally weighted index of 400 companies in the United States, selected based on a Growth at a Reasonable Price methodology also known as GARP.
Investors face an intriguing but complicated new year in 2025. U.S. markets look set for a soft landing after several rate cuts.
Barron's 400 ETF follows a “GARP” strategy, emphasizing quality mid-cap stocks, with a diversified portfolio and a focus on financials and industrials. BFOR has outperformed the SPDR S&P Midcap 400 ETF since inception, but only by a narrow margin, with similar risk levels. Despite its strong fundamentals and diversification, BFOR has underperformed other growth ETFs with lower fees and higher liquidity since 2020.