2024-06-23 22:43:26 ET
Summary
- COWZ underwent its quarterly reconstitution after business close Friday, substituting 29 stocks that significantly changed its composition. Notably, Technology exposure increased by 9% and Energy decreased by 5%.
- COWZ also added many small- and mid-cap stocks and now has 30% allocated to stocks with market caps under $10 billion, the most since I began coverage.
- There are important risk and quality implications investors should consider when buying smaller companies. To demonstrate, I will compare COWZ's fundamentals against three key free-cash-flow players: VFLO, FLOW, and COWS.
- This article also includes the full list of the quarterly additions and deletions and how they performed over the last three years.
Investment Thesis
Read the full article on Seeking Alpha
For further details see:
COWZ June Reconstitution: 29 Substitutions Reshape This $26 Billion Cash Cows ETF