Best stocks to invest in – Barron’s 400 ETF (BFOR) Hits New 52-Week Low



Best stocks to invest in

For investors interested in finding out the painful areas of investing, Barron’s 400 ETF (BFOR) is probably on radar now. The fund just hit a 52-week low, and shares of BFOR are down roughly 21.1% from their 52-week high price of $34.30/share.

Are more pains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better idea of where it might be headed:

BFOR in Focus

BFOR tracks the performance of the Barron’s 400 Index that looks to select high performing U.S. stocks based on four fundamental factors – growth, valuation, profitability and cash flow.

BFOR charges investors 65 basis points a year in fees and has top holdings in Charles River Laboratories, WW Grainger and Home Depot (see Total Market (U.S.) ETFs here).

Why the Move?


The global market was off to an extremely weak start to 2016 mainly on the Chinese market crash and a huge plunge in oil price. Other developed markets have also been soft. All these dampened the risk-on market sentiments. Investors may also be nervous about the progress in Fed policy tightening and doubt whether the U.S. economy can digest this move amid broad-based gloom.

More Pains Ahead?

The fund has a weighted alpha of negative 18.40. A negative weighted alpha hints at more pain. So, it is wise to flee the space at the current level as broader market sentiments remained choppy and Q4 earnings estimates are anything but enthusiastic. Things will likely take some more time to stabilize.

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BARRONS-400 ETF (BFOR): ETF Research Reports
 
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