ALPS, the widely used exchange-traded fund distributor that now also sponsors its own ETFs, is launching an ETF tomorrow that’s based on the Barron’s 400 Index, which screens “high performing equity securities of U.S. companies” based on fundamental factors.
The Barron’s 400 ETF (NYSEArca: BFOR) will come with an annual expense ratio of 0.65 percent, or $65 for each $10,000 invested, according to the most recent registration statement Denver-based ALPS filed detailing the fund.
The Barron’s 400 Index selects the 400 stocks from the Dow Jones U.S. Total Stock Market Index, and selects components based on the strength of their fundamentals in growth, value, profitability and cash flow, and then screens securities for criteria regarding concentration, market capitalization and liquidity.
BFOR appears to be similar to a strategy that ProShares put into registration a bit more than five years ago. That proposed ProShares fund has languished in registration and hasn’t yet made it to market.
The eligible stocks that are selected for inclusion in the underlying index’s portfolio are equally weighted.
The index is rebalanced by the index provider semiannually, on the third Friday of March and September each year, according to the filing.
BFOR will be ALPS’ 10th fund. The company now has nine ETFs with total assets under management of $6.78 billion. The vast majority of that sum is in the Alerian MLP ETF (NYSEArca: AMLP), which has gathered assets of about $6.25 billion, according to data compiled by IndexUniverse.
Be careful when making fruit-basket comparisons; you’re likely to come up with lemons.
Pimco is going back to what it does best—generating alpha through fixed-income exposure.
Understanding how to trade ETFs means understanding a number of crucial metrics.
A robotic focus on expense ratios costs more than you think.