(ICOW) Pacer Developed Markets - Ratings and Ratios

The Pacer Developed Markets International Cash Cows 100 ETF (BATS: ICOW) is designed to capture the value of non-U.S. companies in developed markets that generate strong free cash flow. The fund commits at least 80% of its assets to securities in its underlying index or to investments that mimic those securities economic characteristics.

The index employs a clear, rules-based approach to identify large and mid-cap companies with high free cash flow yields. This focus on cash flow is critical, as it often signals a companys ability to generate profits and return value to shareholders, even when earnings or growth metrics are less clear.

By targeting international developed markets, the ETF offers U.S. investors a way to diversify their portfolios and gain exposure to companies outside the domestic market. The funds methodology ensures it avoids the subjective judgments that can come with actively managed funds, instead relying on measurable financial metrics.

For investors and fund managers, the ETFs focus on free cash flow yield makes it a potential option for those seeking value in international markets. It also provides a way to tap into the financial health of companies that may be undervalued by traditional market metrics.

With an AUM of over $1 billion, ICOW is a substantial player in the foreign large-value ETF category. Its listing on the BATS exchange ensures liquidity, and its focus on developed markets reduces some of the risks associated with emerging market investments.

Overall, ICOW is a tool for investors looking to align their portfolios with companies that prioritize cash generation and financial discipline, while also diversifying geographically beyond U.S. borders.