Pacer US Cash Cows 100 Price, Forecast, Insider, Ratings, Fundamentals & Signals

It might be hard to believe there are exchange-traded funds (ETF) better than the Magnificent 7, which are up nearly 14% year-to-date. However, some top-notch ETFs consistently beat the S&P 500 over the long haul while providing more growth opportunities.

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.

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the Pacer US Cash Cows 100 ETF (COWZ) is a smart beta exchange traded fund launched on 12/16/2016.

Warren Buffett considers free cash flow, or "owner earnings," the truest form of intrinsic value for a company. History has proven him correct. FCF yield (FCF/EV) is the best-performing strategy of the last 33 years, with almost 18% average annual returns or 151X returns vs. 22X for the S&P. FCF yield ETFs are becoming popular with COWZ, COWS, and VFLO now competing for investor interest.

Pacer US Cash Cows 100 ETF focuses on high cash flow companies with dividend growth potential and healthy balance sheets. The ETF's holdings have been rebalanced, with the energy sector being the largest sector exposure. While the starting dividend yield is low, the ETF has shown exceptional dividend growth since inception.

Overall, ETFs pulled in $20.6 billion in capital last month, taking year-to-date inflows to $196.4 billion.

COWZ: Invest In Cheap Cash Cows

In the past couple of years, ETF-oriented advisors have turned their attention to free cash flow ETFs. Free cash flow is the cash available after a company has paid expenses, interest, taxes and long-term investments.

Valuation gaps between value and growth stocks are at decades-high. Value could outperform from here on out. Value ETFs offer investors diversified exposure to cheaply valued stocks. Three funds stand out from the pack.

COWZ underwent its scheduled quarterly rebalance on Friday, with changes effective Monday, March 18. In total, 22 stocks were substituted, and Energy exposure dipped by 5%. With its free cash flow yield strategy, COWZ consistently hits its targets: high-quality stocks trading at low valuations. It also has low overlap with most broad market ETFs like SPY. Growth remains a problem, with earnings per share for COWZ's newest holdings estimated to decline by 1.87% over the next year. As such, it's a pure value play.