Cash Cows Resource Library

Rethinking Value Investing
With Free Cash Flow Yield

Finding stocks with room to grow can be difficult when the market is overvalued.
That is why we believe in using Free Cash Flow Yield to indicate whether a
company is producing more cash than it needs to run its business, therefore
allowing for growth opportunities through other investments.

The Pacer US Cash Cows 100 ETF (COWZ), Pacer US Small Cap Cash Cows 100 ETF (CALF) and the Pacer Developed Markets International Cash Cows 100 ETF (ICOW) are large-cap, small-cap value, and international ETFs that seek to invest in high quality companies within the Russell 1000 Index, S&P Small Cap 600 Index or the FTSE Developed Ex-US Index based on free cash flow yield. The Pacer Global Cash Cows Dividend ETF (GCOW) takes this strategy to a global level by applying the strategy to the FTSE Developed Large-Cap Index and adding a dividend yield screen.

 

Pacer US Cash Cows 100 ETF
(COWZ)

Morningstar RatingTM
Overall rating out of 377 Mid-Cap Value funds,
based on risk-adjusted returns as of 2/29/24.

Pacer US Small Cap Cash Cows 100 ETF
(CALF)

Morningstar RatingTM
Overall rating out of 457 Small Value funds,
based on risk-adjusted returns as of 2/29/24.

 

Pacer Global Cash Cows Dividend ETF
(GCOW)

Morningstar RatingTM
Overall rating out of 149 Global Large-Stock Value funds,
based on risk-adjusted returns as of 2/29/24.

Pacer Developed Markets International Cash Cows
100 ETF
(ICOW)

Morningstar RatingTM
Overall rating out of 340 Foreign Large Value funds,
based on risk-adjusted returns as of 2/29/24.


Resources Available:

COWZ Homepage CALF Homepage GCOW Homepage
COWZ Rebalance CALF Rebalance Cash Cows Video Explanation
ICOW Homepage The Power of Free Cash Flow Yield Value of Intangible Assets

 

2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

COWZ Overall Morningstar Rating 5 stars: Class ETF Shares, Mid-Cap Value category; 377 funds. 3-year rating 5 stars; 377 funds. 5-year rating 5 stars; 358 funds. 10-year period not rated. Ratings reflect risk-adjustment performance. Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

CALF Overall Morningstar Rating 5 stars: Class ETF Shares, Small Value category; 457 funds. 3-year rating 4 stars; 457 funds. 5-year rating 5 stars; 426 funds. 10-year period not rated. Ratings reflect risk-adjustment performance. Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

GCOW
Overall Morningstar Rating 3 stars: Class ETF Shares, Global Large-Stock Value category; 149 funds. 3-year rating 5 stars; 149 funds. 5-year rating 2 stars; 139 funds. 10-year period not rated. Ratings reflect risk-adjusted performance. Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

ICOW Overall Morningstar Rating 3 stars: Class ETF Shares, Foreign Large Value category; 340 funds. 3-year rating 3 stars; 340 funds. 5-year rating 3 stars; 319 funds. 10-year period not rated. Ratings reflect risk-adjusted performance. Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales load. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.

The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three- year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.