Launched on 12/16/2016, the Pacer US Cash Cows 100 ETF (COWZ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
Overall, ETFs pulled in $54.4 billion in capital last week, pushing the year-to-date inflows to $324.7 billion.
Launched on 12/16/2016, the Pacer US Cash Cows 100 ETF (COWZ) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
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.
On this week's episode of ETF Prime, host Nate Geraci was joined by Todd Rosenbluth, VettaFi head of research, to discuss the latest polling data from VettaFi's recent Alternatives Symposium. Afterwards, Geraci talks to Phil McInnis, Avantis chief investment strategist, about the firm's growth in assets under management from ETF products.
S&P 500 companies are generating record amounts of free cash flow, with the largest FCF yield seen in the Energy sector. Investors overweight the Pacer US Cash Cows 100 ETF have underperformed the broad US stock market since late 2022, however. With a 12x earnings multiple and a high allocation to cyclical areas of the market, I spot key price levels to monitor on the chart.