ALPS Barron’s 400 ETF (BFOR US) – Portfolio Construction Methodology

The underlying Barron’s 400 Index offers a rules-based U.S. equity selection using MarketGrader’s composite score (24 indicators across Growth, Value, Profitability, and Cash Flow). Eligible common stocks must have float-adjusted market cap ≥ USD 250m and three-month ADTV ≥ USD 2m; at least 25% of the index (100 names) must have total market cap > USD 3bn. REITs are ineligible. After ranking the eligible universe by the composite score, diversification rules cap each economic sector at 20% (≤80 names) before final selection to 400 constituents. The index is equally weighted at each rebalance, emphasizing stock-level factor selection over size. Reconstitution and rebalancing occur semi-annually on the third Friday of March and September, when the full selection, sector limits, and equal weighting are reapplied, with no ongoing issuer-level caps between reviews.

To explore BFOR in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/BFOR_US