The Pacer US Cash Cows 100 ETF (COWZ Quick QuoteCOWZ - Free Report) was launched on 12/16/2016, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

The fund is sponsored by Pacer Etfs. It has amassed assets over $24.43 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.49%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.86%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Energy sector--about 22.70% of the portfolio. Consumer Discretionary and Healthcare round out the top three.

Looking at individual holdings, Qualcomm Inc (QCOM Quick QuoteQCOM - Free Report) accounts for about 2.21% of total assets, followed by Gilead Sciences Inc (GILD Quick QuoteGILD - Free Report) and At&t Inc (T Quick QuoteT - Free Report) .

The top 10 holdings account for about 21.17% of total assets under management.

Performance and Risk

COWZ seeks to match the performance of the Pacer US Cash Cows 100 Index before fees and expenses. The Pacer US Cash Cows 100 Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization U.S. companies with high free cash flow yields.

The ETF has lost about -1.82% so far this year and it's up approximately 3.98% in the last one year (as of 03/06/2025). In the past 52-week period, it has traded between $53.41 and $61.35.

The ETF has a beta of 1.01 and standard deviation of 18.42% for the trailing three-year period. With about 103 holdings, it effectively diversifies company-specific risk.

Alternatives

Pacer US Cash Cows 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, COWZ is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The Schwab U.S. Dividend Equity ETF (SCHD Quick QuoteSCHD - Free Report) and the Vanguard Value ETF (VTV Quick QuoteVTV - Free Report) track a similar index. While Schwab U.S. Dividend Equity ETF has $69.23 billion in assets, Vanguard Value ETF has $133.60 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.