Funds that channel Ben Graham

These popular U.S.-listed ETFs that tilt toward yield or dividend growth have their roots in the teachings of Ben Graham.

Michael Rawson, CFA 29 September, 2015 | 5:00PM

Benjamin Graham is often described as the father of value investing. He might also be described as the father of strategic beta.

In his book The Intelligent Investor, he laid out a number of quantitative rules with which to evaluate stocks. While the precise implementation of his rules is open to interpretation, the general concepts are clear. These same concepts underlie the indexes that form the basis of many of the dividend-oriented exchange-traded funds investors use today.

The rules (in abbreviated form) are:

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Johnson & Johnson144.44 USD0.16
McDonald's Corp214.97 USD-0.67
Nike Inc B127.11 USD8.76

About Author

Michael Rawson, CFA

Michael Rawson, CFA  Michael Rawson, CFA, is an analyst covering equity strategies on Morningstar’s manager research team.

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