The Barron's 400 Index is an equal-weighted stock market index that tracks the performance of certain public companies in the United States, based on the strength of financial characteristics related to growth, market value, profitability and cash flow. The Barron's 400 has tended to outperform certain other major indexes at least since 2000 through the first half of 2013. The Barron's 400 employs a consistent “growth-at-a-reasonable price” (GARP) selection strategy.
The index differs from some other major indexes in that it is equal-weighted, unlike the Dow Jones US Total Stock Market Index, the NASDAQ Composite and the Standard & Poor's 500 (S&P 500), which arecapitalization-weighted. In that respect it also differs from the Dow Jones Industrial Average, which is calculated as the average of the share prices of the underlying components.
The Barron's 400 (also known as the B400) is compiled, maintained and updated by MarketGrader.com Corp., a stock research firm headquartered in Coral Gables, FL. MarketGrader developed the Barron's 400 in consultation with editors at Barron's, a financial news magazine. The two companies continue to maintain an ongoing partnership for the index. The index is calculated by NYSE/Euronext.