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ICPY uses active management to target international value investing

The ETF is positioned as a more focused alternative to passive international value indexing, aiming to address “value trap” risk in markets that trade at valuation discounts versus U.S. stocks.

Reported · Written up by our desk · ETFs

ETF Trends says international equities have gained momentum over the past year and a half, but many still trade at noticeable valuation discounts versus U.S. stocks.

The outlet also warns that international value strategies can be vulnerable to “value traps,” particularly when implemented through passive indexing, and argues that a more targeted approach may be better suited.

As an example, ETF Trends highlights the Tweedy, Browne International Insider + Value ETF (ICPY), describing it as differentiated from a traditional passive approach due to its active management.

The outlet says ICPY’s active managers can adjust portfolio positioning, including sector and security allocations, as market conditions change, as part of its value investing approach.

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