Investors believe that "cash is king" in the current environment of persistent inflation, high interest rates, and a potential economic slowdown. As a result, ETFs focused on companies that generate a substantial amount of cash have garnered significant interest from investors this year.

According to the legendary investor Warren Buffett, free cash flow—the cash remaining after a company has covered expenses, interest, taxes, and long-term investments—is the most crucial valuation metric.

Buffett favors companies that generate more cash than necessary for their operational needs. Such companies can utilize free cash flow to reduce debt, distribute the cash to investors through dividends or buybacks, or reinvest in their operations.

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 $14.4 billion in assets. Chevron (CVX Quick QuoteCVX - Free Report) and Marathon Oil (MRO Quick QuoteMRO - Free Report) are its top holdings.

The VictoryShares Free Cash Flow ETF (VFLO Quick QuoteVFLO - Free Report) holds profitable large-cap companies that not only have high free cash flow yields but also favorable growth prospects.

The Global X U.S. Cash Flow Kings 100 ETF (FLOW Quick QuoteFLOW - Free Report) and the First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY Quick QuoteFCFY - Free Report) are the newest entrants in the space.

To learn more about these ETFs, please watch the short video above.