(COWZ) Pacer US Cash Cows 100 - Overview

The Pacer US Cash Cows 100 ETF (COWZ) utilizes a rules-based strategy to target 100 large and mid-capitalization U.S. companies demonstrating high free cash flow yields. By focusing on free cash flow-the cash remaining after a company pays for its operating expenses and capital expenditures-the fund identifies businesses with the potential to fund dividends, buy back shares, or reduce debt without relying on external financing.

The funds methodology filters the Russell 1000 Index to select the top 100 companies based on their free cash flow yield over the trailing twelve months. This value-oriented approach often results in higher sector weights toward energy and materials, industries where mature companies frequently generate significant excess cash relative to their enterprise value. Investors can analyze how these cash flow metrics compare to historical sector averages on ValueRay.

Under normal market conditions, the ETF maintains at least 80% of its total assets in the component securities of its underlying index. This structural focus on cash cows aims to provide exposure to high-quality companies that may be undervalued by traditional earnings-per-share metrics.