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The Zacks Analyst Blog Highlights MCOW, SCOW, SFLO and CALF
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For Immediate Release
Chicago, IL – September 8, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Pacer S&P MidCap 400 Quality FCF Aristocrats ETF (MCOW - Free Report) , Pacer S&P SmallCap 600 Quality FCF Aristocrats Strategy (SCOW - Free Report) , Victoryshares Small Cap Free Cash Flow ETF (SFLO - Free Report) and Pacer US Small Cap Cash Cows ETF (CALF - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Looking for Quality ETFs in Smaller Caps? Tap 2 New FCF Aristocrats
Pacer ETFs recently launched two new exchange-traded funds (ETFs) that are deemed to offer quality exposure. These two ETFs are Pacer S&P MidCap 400 Quality FCF Aristocrats ETF and Pacer S&P SmallCap 600 Quality FCF Aristocrats Strategy.
No stock takes more than 4.24% weight of the fund's weight. Pure Storage (4.24%), Docusign (4.21%) and Manhattan Associates (4.12%) are the top three holdings of the fund. Information Technology (31.98%), Industrials (31.38%), Health Care (11.58%) and Consumer Discretionary (10.91%) are the top four sectors of the fund.
SCOW in Focus
The fund's focus is on the S&P SmallCap 600 for companies with at least seven consecutive years of positive free cash flow and the highest free cash flow quality score. The 82-stock fund charges 59 bps in fees, per the issuer.
Jackson Financial Inc (5.76%), Corcept Therapeutics (4.95%) and Etsy (4.67%) are the top stocks of the fund. Information Technology (22.19%), Consumer Discretionary (18.71%) and Financials (16.80%) are the top three sectors of the fund.
How Do They Fit in a Portfolio?
A higher free cash flow margin shows a company's excess cash-generating ability. The higher the margin, the stronger the company's financial resilience in volatile operating environments.
With Trump tariffs leaving some businesses in ashes, quality exposure is essential. Smaller-caps, with less export exposure and a stronger domestic focus, seem intriguing choices amid trade tensions. But lest we forget, they also need robust U.S. economic growth to truly outperform.
However, tariffs are likely to push up inflation, which, in turn, may lead consumers to become more cautious with their spending. This could weigh on economic growth.
Hence, in the smaller-cap spectrum, quality exposure is needed. As the measure — a high FCF score —indicates a company's solid fundamentals, one can bet on newbies like MCOW and SCOW.
Competition
Victoryshares Small Cap Free Cash Flow ETF is an ETF with almost the same concept. The fund puts focus on companies with high FCF yield and the highest expected growth rates. The fund has an asset base of $338.1 million. The fund hit the market in December 2023.
Pacer management also has a cash-focused small-cap ETF, namely Pacer US Small Cap Cash Cows ETF. The fund has an asset base of $4.1 billion. It charges 59 bps in fees.
The asset bases of both funds – SFLO and CALF – indicate the likelihood of success of the newbies. Both funds, MCOW and SCOW, should make a killing given their appealing investment objectives and the historical success of their peer funds.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don't miss out on this valuable resource. It's free!
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights MCOW, SCOW, SFLO and CALF
For Immediate Release
Chicago, IL – September 8, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Pacer S&P MidCap 400 Quality FCF Aristocrats ETF (MCOW - Free Report) , Pacer S&P SmallCap 600 Quality FCF Aristocrats Strategy (SCOW - Free Report) , Victoryshares Small Cap Free Cash Flow ETF (SFLO - Free Report) and Pacer US Small Cap Cash Cows ETF (CALF - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Looking for Quality ETFs in Smaller Caps? Tap 2 New FCF Aristocrats
Pacer ETFs recently launched two new exchange-traded funds (ETFs) that are deemed to offer quality exposure. These two ETFs are Pacer S&P MidCap 400 Quality FCF Aristocrats ETF and Pacer S&P SmallCap 600 Quality FCF Aristocrats Strategy.
MCOW in Focus
The fund looks to provide capital appreciation over time by screening the S&P MidCap 400 for companies with at least seven successive years of positive free cash flow (per the issuer) and the highest free cash flow (FCF) quality score. The 81-stock fund charges 49 bps in fees.
No stock takes more than 4.24% weight of the fund's weight. Pure Storage (4.24%), Docusign (4.21%) and Manhattan Associates (4.12%) are the top three holdings of the fund. Information Technology (31.98%), Industrials (31.38%), Health Care (11.58%) and Consumer Discretionary (10.91%) are the top four sectors of the fund.
SCOW in Focus
The fund's focus is on the S&P SmallCap 600 for companies with at least seven consecutive years of positive free cash flow and the highest free cash flow quality score. The 82-stock fund charges 59 bps in fees, per the issuer.
Jackson Financial Inc (5.76%), Corcept Therapeutics (4.95%) and Etsy (4.67%) are the top stocks of the fund. Information Technology (22.19%), Consumer Discretionary (18.71%) and Financials (16.80%) are the top three sectors of the fund.
How Do They Fit in a Portfolio?
A higher free cash flow margin shows a company's excess cash-generating ability. The higher the margin, the stronger the company's financial resilience in volatile operating environments.
With Trump tariffs leaving some businesses in ashes, quality exposure is essential. Smaller-caps, with less export exposure and a stronger domestic focus, seem intriguing choices amid trade tensions. But lest we forget, they also need robust U.S. economic growth to truly outperform.
However, tariffs are likely to push up inflation, which, in turn, may lead consumers to become more cautious with their spending. This could weigh on economic growth.
Hence, in the smaller-cap spectrum, quality exposure is needed. As the measure — a high FCF score —indicates a company's solid fundamentals, one can bet on newbies like MCOW and SCOW.
Competition
Victoryshares Small Cap Free Cash Flow ETF is an ETF with almost the same concept. The fund puts focus on companies with high FCF yield and the highest expected growth rates. The fund has an asset base of $338.1 million. The fund hit the market in December 2023.
Pacer management also has a cash-focused small-cap ETF, namely Pacer US Small Cap Cash Cows ETF. The fund has an asset base of $4.1 billion. It charges 59 bps in fees.
The asset bases of both funds – SFLO and CALF – indicate the likelihood of success of the newbies. Both funds, MCOW and SCOW, should make a killing given their appealing investment objectives and the historical success of their peer funds.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don't miss out on this valuable resource. It's free!
Get it now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.