Investors believe that “cash is king” in the current environment of surging inflation, rising rates, and a potential economic slowdown. Therefore, ETFs that focus on cash-rich companies have seen a lot of interest from investors this year.

Per legendary investor Warren Buffett, free cash flow or the cash remaining after a company has paid expenses, interest, taxes, and long-term investments, is the most important valuation metric. Buffett loves companies that generate more cash than they need to run their businesses.

The Pacer U.S. Cash Cows 100 ETF (COWZ Quick QuoteCOWZ - Free Report) selects 100 US companies with strong cash flows and healthy balance sheets, from the Russell 1000 index. It has over $6.4 billion in assets. Valero Energy (VLO Quick QuoteVLO - Free Report)  and Occidental Petroleum (OXY Quick QuoteOXY - Free Report) are its top holdings.

The Pacer Global Cash Cows Dividend ETF (GCOW Quick QuoteGCOW - Free Report) selects developed-market large-cap companies that can continue to pay consistent dividends, through free cash flow yield and dividend yield screens. Exxon Mobil (XOM Quick QuoteXOM - Free Report) and Chevron (CVX Quick QuoteCVX - Free Report) are its top holdings.

Pacer Cash Cows Fund of Funds ETF (HERD Quick QuoteHERD - Free Report) holds five “cash cow” ETFs in equal weights. To learn more about these ETFs, please watch the short video above.