The Barron’s Future Focus Stock Index is getting its first rebalance after Friday’s close.
Four stocks will be added to the index, while five will be removed. The new components are Citigroup (ticker: C), Capital One Financial (COF), Southwest Airlines (LUV), and Raytheon Technologies (RTX). KLA Corp (KLA), Motorola Solutions (MSI), Micron Technology (MU), Northrop Grumman (NOC), and VF Corp. (VFC) have been removed.
The Future Focus Stock index, created around Barron’s recent centennial celebration, is designed to track the modern and evolving U.S. economy through roughly 140 U.S.-listed stocks. It highlights companies leading the way forward, and incorporates a mix of well-established companies that have adopted technology and strategies to future-proof their businesses as well as newer public companies that are changing the way business is done and influencing consumer behavior.
The index is equal weighted, meaning each stock has an equal influence on the index’s movements. (Here’s more on the methodology behind the index.)
Barron’s has taken a hybrid approach in coming up with the Future Focus Stock Index, relying on insights from the Barron’s newsroom, along with corporate-effectiveness research from the Drucker Institute, a part of Claremont Graduate University in Claremont, Calif.
In April, Drucker Institute Executive Director Zachary First wrote that “the Barron’s Future Focus Stock Index is designed to give an innovative answer to an eternal question: Which of today’s biggest companies will have an even bigger economic impact three to five years from now?”
The index has returned 2.6% since its launch date on April 1, 2021 versus a 4.9% gain for the S&P 500 over the same period.
The index is rebalanced semiannually on the third Friday of June and third Friday of December.