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. This rules-based approach favors firms that score well on a range of fundamental indicators (earnings growth, profitability, and valuation). The methodology excludes Real Estate Investment Trusts (REITs).
Unlike many traditional funds, BFOR’s index methodology doesn't allow a handful of mega-cap tech stocks to dominate performance. Each holding makes up roughly 0.25% of the fund upon rebalancing, meaning every company, from Microsoft to the much smaller NewtekOne Inc, has an equal chance to influence returns.
A GARP-Focused, Equally Weighted Portfolio
GARP investing seeks a balance between value and growth. BFOR’s methodology helps filter for companies that are growing efficiently and at reasonable valuations. The semi-annual rebalancing ensures the portfolio stays aligned with these criteria, offering investors a dynamic and responsive strategy.
BFOR’s expense ratio of 0.65% is modest given its rules-based methodology that incorporates a wide range of data. This approach has delivered solid historical performance. According to YCharts, BFOR returned 11.48% over the last 12 months and 122.4% over the last five years. Year-to-date, as of the latest data, it’s up 1.68%.
Diversification by Design
BFOR’s structure promotes balanced sector exposure by capping any single sector at 20%, or around 80 companies. In its most recent rebalance (March 31, 2025), 182 companies were replaced, with technology seeing the largest increase and energy experiencing the most significant drop.
