ICOW: A Unique Approach To International Value With Middling Results

Crimson And Gold Research238 FollowersFollow5ShareSavePlay(11min)CommentsSummaryThe Pacer Developed Markets International Cash Cows 100 ETF is a large-cap foreign value fund uniquely excluding financials.ICOW selects 100 stocks from the FTSE Developed ex-US Index based on high free cash flow yield, resulting in a low average PE portfolio.ICOW's performance has lagged international value peers, and with a 0.65% expense ratio and declining dividends, I do not rate it a Buy.ICOW may suit investors already overweight financials elsewhere, given its sector exclusions and heavy industrials and energy tilt. SpiffyJ/iStock via Getty Images I have written about several international ETFs over the past year, most of which hold a portfolio of stocks that has a noticeable slant toward value investing. Earlier this month, I covered the iShares InternationalThis article was written byCrimson And Gold Research238 FollowersFollowI have been involved in the financial world for over 25 years with experience as an advisor, teacher, and writer. I am a full believer in the free-market system and that financial markets are efficient with most stocks reflecting their real current value. The best opportunities for profits on individual stocks come from stocks that are less-widely followed by the average investor or from stocks that may not accurately reflect the opportunities that currently exist in their markets.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.