COWZ ETF: What Is It? — Returns, Expense Ratio, Holdings, and Alternative ETFs
The Pacer US Cash Cows 100 ETF (COWZ) tracks a cash-cow strategy that holds U.S. quality stocks with strong free cash flow, distinguishing it from high-dividend ETFs like SCHD and VYM. Key selection criteria include the total expense ratio and the degree of value-factor exposure.
SubscribeWhat Is the Pacer US Cash Cows 100 ETF?
The fund tracks the Pacer US Cash Cows 100 Index, using a rules-driven methodology to select and hold approximately 100 U.S. large- and mid-cap companies with the highest free cash flow yield. It is a factor-based strategy that uses cash-generation capability as the core screening metric.
It is well-suited for medium- to long-term investors who want to emphasize corporate cash-generation efficiency and the value factor over high dividend yield.
The ETF is managed by Pacer Advisors and follows a passive (index-tracking) investment approach.
How Does the Pacer US Cash Cows 100 ETF Work?
| Item | Details |
|---|---|
| Tracked Index | Pacer US Cash Cows 100 Index |
| Management Style | Passive (rules-based index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Schedule | Quarterly dividend |
| Total Expense Ratio | 0.49% |
The fund draws from a broad universe of U.S. large- and mid-cap stocks and selects the companies with the highest free-cash-flow yield. Rather than market capitalization, cash-flow efficiency serves as the starting point for weighting, capturing both a value-tilted profile and a cash-generation factor simultaneously. Holdings are reviewed on a quarterly basis.
- Screening based on free-cash-flow yield
- Weighted by cash-flow factor, not market cap
Size and Cost of the Pacer US Cash Cows 100 ETF (AUM & Expense Ratio)
Assets under management (AUM) stand at $19.7B, and the total expense ratio is 0.49% annually.
Unlike traditional high-dividend ETFs, this fund uses cash-generation capability rather than dividends as its core criterion, giving it a distinctly different portfolio profile within the same value and dividend category.
Performance and Flows of the Pacer US Cash Cows 100 ETF
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund tends to show relatively resilient performance when value stocks and cash-flow-rich quality names are in favor, but may lag during growth-led market environments. Short-term performance is influenced by sector rotation and the interest-rate backdrop.
It belongs to a category that has seen sustained fund flows as interest in the cash-flow factor grows, positioning it as a value and dividend alternative. During periods of market volatility, capital seeking defensive value exposure also tends to flow in.
Strengths and Weaknesses of the Pacer US Cash Cows 100 ETF
Differentiated value exposure centered on cash-generation capability is the key strength, while higher expense ratios and relative weakness in growth-led markets are the notable drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Pacer US Cash Cows 100 ETF
The SCHD, VYM, and VIG shown in the table are comparable products within the same value and dividend category. While they emphasize dividends themselves, COWZ uses free cash flow as its core criterion, which sets it apart. For additional options, investors may also consider CALF, another cash-flow ETF from the same issuer focused on mid-cap stocks, as well as VTV for those seeking broader value exposure.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SCHD | Schwab US Dividend Equity ETF | $35.78 | +0.5% | $120.5B | 0.06% | 2.94% | +34.1% |
 VIG | Vanguard Dividend Appreciation FTF | $247.76 | -0.6% | $116.5B | 0.04% | 1.47% | +13.8% |
 VYM | Vanguard High Dividend Yield Indx ETF | $163.74 | -0.7% | $83.8B | 0.04% | 2.25% | +16.3% |
 DFAC | U.S. Core Equity 2 Portfolio-ETF Class Shares | $44.89 | -1.3% | $49.9B | 0.18% | 0.88% | +15.4% |
 RDVY | First Trust Rising Dividend Achievers ETF | $79.17 | -1.0% | $25.7B | 0.47% | 0.86% | +17.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| QCOM | Qualcomm Inc | 0.03% | $164.79 | -11.1% | $176.0B | 19.1 | 2.2% |
| BKNG | Booking Holdings Inc | 0.02% | $148.13 | -1.5% | $111.3B | 16.4 | 1.03% |
| MO | Altria Group Inc | 0.02% | $78.03 | +1.7% | $130.3B | 16.1 | 5.54% |
| BMY | Bristol-Myers Squibb Co | 0.02% | $62.48 | +1.8% | $127.6B | 13.8 | 4.06% |
| COP | Conoco Phillips | 0.02% | $154.03 | +2.7% | $185.0B | 20.4 | 2.19% |
| CVS | CVS Health Corp | 0.02% | $90.25 | -0.1% | $115.4B | 23.8 | 3.02% |
| HCA | HCA Healthcare Inc | 0.02% | $473.19 | -1.0% | $102.4B | 15.7 | 0.59% |
| MPC | Marathon Petroleum Corp | 0.02% | $444.73 | +2.8% | $124.9B | 15.3 | 0.92% |
| GD | General Dynamics Corp | 0.02% | $372.59 | +0.5% | $100.8B | 22.7 | 1.7% |
| INTU | Intuit Inc | 0.02% | $341.09 | +3.0% | $91.2B | 20.7 | 1.56% |
Investor Checklist for the Pacer US Cash Cows 100 ETF
Here are the key points to review before investing in COWZ. Given its differentiated factor strategy built around free cash flow, checking the expense burden, value-style exposure, and currency impact in advance can help narrow the gap between expectations and the fund's actual character.
| Checkpoint | What to Confirm | Current Status |
|---|---|---|
| 💵 Expense Ratio | Cumulative cost impact over long-term holding | Somewhat on the high side |
| 📊 Style Exposure | Degree of value and cash-flow factor concentration | Value-oriented |
| 🔁 Rebalancing | Holdings turnover from quarterly reconstitution | Reviewed quarterly |
| 💱 Currency | Impact on won-denominated returns | No currency hedging |
The fund's value-factor tilt can lead to relative weakness in growth-led markets, and the expense burden is higher than that of core ETFs. Even value stocks cannot easily avoid short-term losses during broad market downturns.
For investors who want to look beyond simple dividends and invest in corporate cash-generation capability, this fund offers a differentiated choice. If cost efficiency and broad diversification are the priority, a broad value ETF such as VTV is worth comparing; for those seeking mid-cap cash-flow exposure, CALF is also recommended for review.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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