Exchange-Traded Fund (ETF)
What is the Pacer US Cash Cows 100 ETF?
The Pacer US Cash Cows 100 ETF provides exposure to mid- and large-cap U.S. stocks with high free-cash-flow yields, sometimes called "cash cows." The fund uses the Pacer US Cash Cows Growth Index as its benchmark.
To calculate free-cash-flow yield, you divide a company's free cash flow per share by its market price per share. A high free-cash-flow yield is generally a good thing because it means a company has enough cash to meet its debt obligations, fund its operations, and make dividend payments.
The Pacer U.S. Cash Cows 100 ETF's benchmark index screens stocks from the Russell 1000 index based on average projected free cash flows and earnings for the next two fiscal years. It excludes companies with negative average projected free cash flows or earnings and financial stocks other than real estate investment trusts (REITs).
Investing in the Pacer US Cash Cows 100 ETF may be appealing if you're looking for investment income or value stocks or want a diversified mix of stocks with the financial strength needed to weather a recession.
How to buy the Pacer US Cash Cows 100 ETF
Anyone can buy shares of this ETF in just a few minutes. Follow this easy guide to invest in the Pacer US Cash Cows 100 ETF -- or to buy any ETF or publicly traded stock.
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Holdings of the Pacer US Cash Cows 100 ETF
The Pacer US Cash Cows 100 ETF's 102 holdings are rebalanced and reconstituted each quarter so that no company accounts for more than 2% of its weightings. Its largest concentrations are in the energy, technology, and health sectors, which together account for just over 40% of its holdings.
The fund's five largest holdings are:
- Ford (F -1.35%)
- Nike Inc. Class B (NKE +0.61%)
- Johnson & Johnson (JNJ +0.49%)
- Chevron Corporation (CVX +0.63%)
- ConocoPhillips (COP +0.98%)
Should I invest in the Pacer US Cash Cows 100 ETF?
No investment is right for everyone, but here are some reasons you may want to invest in this ETF:
- You prefer to invest in established companies instead of higher-risk growth companies that offer the possibility of higher returns.
- You want to earn investment income.
- You're concerned about a recession and want to invest in companies positioned well to withstand tough times.
- You're a value investor.
You may want to avoid investing in the Pacer US Cash Cows 100 ETF if:
- You prefer aggressive growth stocks with higher potential returns.
- You're focused on maximizing dividend yield, as you can often find higher yields by focusing on sectors such as utilities, financials, and real estate.
- You already have heavy exposure to energy stocks, mature tech companies, and the consumer discretionary sector.
Does the Pacer US Cash Cows 100 ETF pay a dividend?
The Pacer US Cash Cows 100 ETF has paid quarterly dividends since its inception in 2016. The fund's annual dividend yield is 1.58% based on its share price in August 2025.
That's a bit higher than the S&P 500 index's yield of 1.20%. But if maximizing dividend income is a high priority, consider a dividend ETF instead.
What is the Pacer US Cash Cows 100 ETF's expense ratio?
An ETF expense ratio is the percentage of an investment that goes toward fees. The ETF's expense ratio is 0.49%. That means if you put $10,000 into the fund, you'd pay $49 in fees, and the remaining $9,951 would be invested.
Expense Ratio
Historical performance of the Pacer US Cash Cows 100 ETF
This ETF was created in late 2016. Here's a look at how the fund has performed from its inception through Aug 28, 2025:
Timeline | Returns |
|---|---|
1-year returns | 2.90% |
3-year returns | 31.53% |
5-year returns | 118% |
Returns since inception | 175.1% |
The Pacer US Cash Cows 100 ETF has held up fairly well during bear markets and stock market volatility, which isn't surprising given its focus on companies with high free-cash-flow yields. Take 2022, for example, a year in which the S&P 500 index dropped by about 18%. The ETF still delivered modest returns of 0.2%.
Related investing topics
The bottom line
The Pacer US Cash Cows 100 ETF is a solid pick for long-term ETF investors. Companies that can generate more cash than they need to fund operations can often pursue growth initiatives, pay dividends, and buy back shares. This ETF isn't a great pick for investors seeking high growth, but it's certainly worth a look for value investors looking for financially stable companies.
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