Pacer US Cash Cows 100 ETF (COWZ): Complete Beginner's Guide
Last updated: March 2026 • Pacer • Free Cash Flow
Expense Ratio
0.49%
AUM
$25.0B
Dividend Yield
2.00%
Inception
2016
Beginner Score
9/10
What is Pacer US Cash Cows 100 ETF?
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.
COWZ is managed by Pacer and has been available since 2016. With $25.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.49%, which means for every $10,000 you invest, you pay approximately $49 per year in management fees.
COWZ at a Glance — Key Metrics
| Expense Ratio | 0.49% |
| Total Holdings | 100 |
| P/E Ratio | 12.5 |
| Beta | 0.95 |
| Dividend Yield | 2.00% |
| AUM | $25.0B |
| Inception Year | 2016 |
| Issuer | Pacer |
Top 10 Holdings in COWZ
COWZ holds 100 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Valero Energy Corp. | VLO | 2.20% |
| 2 | McKesson Corp. | MCK | 2.00% |
| 3 | Cardinal Health Inc. | CAH | 1.80% |
| 4 | Marathon Petroleum Corp. | MPC | 1.80% |
| 5 | AmerisourceBergen Corp. | COR | 1.70% |
| 6 | Phillips 66 | PSX | 1.60% |
| 7 | Hewlett Packard Enterprise | HPE | 1.50% |
| 8 | General Motors Co. | GM | 1.40% |
| 9 | DXC Technology | DXC | 1.30% |
| 10 | Cigna Group | CI | 1.30% |
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COWZ Performance History
Here's how COWZ has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.50%
1 Year
21.00%
3 Year
11.50%
5 Year
14.50%
10 Year
12.50%
Beginner Suitability Score: 9/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
COWZ scores 9/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 100 holdings, and has been available since 2016, giving it a proven track record.
How to Buy COWZ — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "COWZ" — Use the search bar in your brokerage platform to find Pacer US Cash Cows 100 ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into COWZ
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With COWZ's expense ratio of 0.49%, a $10,000 investment would lose approximately $4,052 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of COWZ
Pros
- ✓Unique free cash flow yield methodology identifies genuinely profitable businesses
- ✓Equal-weight approach prevents mega-cap dominance seen in market-cap-weighted funds
- ✓Quarterly rebalancing keeps portfolio aligned with current cash flow leaders
- ✓Has outperformed during periods when value and cash-rich companies led the market
Cons
- ✗Higher expense ratio of 0.49% significantly above passive index fund alternatives
- ✗Heavy energy and health care tilts create meaningful sector concentration risk
- ✗High turnover from quarterly rebalancing may generate taxable capital gains
COWZ vs Similar ETFs
See how COWZ stacks up against similar funds:
Frequently Asked Questions
Is COWZ a good ETF for beginners?▾
COWZ has a Beginner Suitability Score of 9/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of COWZ?▾
COWZ has an expense ratio of 0.49%. This means for every $10,000 you invest, you pay approximately $49 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in COWZ?▾
You can invest in COWZ with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does COWZ pay dividends?▾
Yes, COWZ pays dividends with a current yield of approximately 2.00%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in COWZ?▾
The top holdings in COWZ include Valero Energy Corp. (2.20%), McKesson Corp. (2.00%), Cardinal Health Inc. (1.80%), and more. The fund holds 100 total positions, providing broad diversification across many companies.