‘Cash Cow’ Fund Outperforms S&P 500 with 9% YTD Return
The Pacer Cash Cows 100 ETF (COWZ) has returned 9% year-to-date through July 7, 2026, outperforming the S&P 500's 5% gain. The fund focuses on companies with strong free cash flow, such as ConocoPhillips, SLB, and EOG Resources.
Key Numbers
According to 24/7 Wall St., the Pacer Cash Cows 100 ETF (COWZ) is outperforming the S&P 500 this year, with a 9% year-to-date return as of July 7, 2026, compared to 5% for the index. In contrast, the Vanguard S&P 500 ETF (VOO) returned 10.25%.
What is the 'Cash Cow' Fund?
The Pacer Cash Cows 100 ETF (ticker: COWZ) is an index fund tracking the Pacer US Cash Cows 100 Index, which includes 100 U.S. companies with the highest free cash flow. Companies are selected based on their free cash flow yield, focusing on profitable firms that generate ample cash.
Top Holdings in the Energy Sector
Notable holdings include:
- ConocoPhillips (COP): a major energy company.
- SLB (SLB): an oilfield services provider.
- EOG Resources (EOG): an oil and gas exploration and production company.
These companies are known for strong free cash flow generation, aligning with the fund's strategy.
Performance Comparison
| Fund | YTD Return |
|---|---|
| Pacer Cash Cows 100 ETF (COWZ) | 9% |
| Vanguard S&P 500 ETF (VOO) | 10.25% |
| S&P 500 | 5% |
Although VOO outperformed COWZ, the latter still beat the broader index, highlighting the strength of the free cash flow strategy.
What This Means for Investors
COWZ offers an alternative for investors seeking exposure to companies with strong fundamentals and high cash generation, particularly in the energy sector. However, performance depends on the continued cash flow strength of its holdings and may be affected by commodity price volatility.
Frequently Asked Questions
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