COWZ vs SCHD: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between COWZ and SCHD

COWZ (Pacer US Cash Cows 100 ETF) is a free cash flow fund managed by Pacer. COWZ selects the 100 Russell 1000 companies with the highest free cash flow yields, targeting businesses that generate abundant cash relative to their market value. It rebalances quarterly and uses an equal-weight methodology among its holdings. Beginners who value companies that produce real cash rather than just accounting earnings will find COWZ offers a unique, fundamentally driven investment approach.

SCHD (Schwab U.S. Dividend Equity ETF) is a u.s. large-cap dividend fund managed by Charles Schwab. SCHD focuses on high-quality U.S. companies with strong track records of paying and growing dividends. It uses a rules-based approach to select about 100 stocks that have consistently paid dividends for at least 10 years. Beginners who want both income and growth often find SCHD attractive because it combines a solid dividend yield with quality stock selection at a very low cost.

The most notable differences are in fees (0.49% vs 0.06%), number of holdings (100 vs 103), and 5-year returns (14.50% vs 12.10%).

Holdings Overlap Analysis

COWZ and SCHD share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $3,537 on a $10,000 investment. SCHD saves you more in fees over time.

Which One Should a Beginner Choose?

Choose COWZ if: You want value investors who believe free cash flow yield is a superior valuation metric, those seeking an alternative to traditional price-based value strategies, investors who want exposure to cash-generative businesses regardless of sector. It's managed by Pacer with an expense ratio of 0.49%.

Choose SCHD if: You want income-focused investors who want a reliable and growing dividend stream, conservative investors who prefer lower volatility with quality companies, retirees or pre-retirees building a dividend income portfolio. It's managed by Charles Schwab with an expense ratio of 0.06%.

Can You Own Both COWZ and SCHD?

Absolutely! With only 0% overlap, COWZ and SCHD complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions