Pacer Cash COWZ 100-Nasdaq 100 Rotator ETF (QQWZ)

Overview

The Pacer Cash Cows 100 ETF (COWZ) employs a strategy focused on identifying the top 100 companies in the Russell 1000 Index with the highest free cash flow yield. The Pacer Cash Cows 100-Nasdaq 100 Rotator ETF (COWZ@) combines COWZ's methodology with a rotation strategy that invests in the Nasdaq 100 when COWZ's performance lags.

Reputation and Reliability

Pacer ETFs is known for its rules-based, index-tracking strategies. They are generally considered reliable and reputable.

Management Expertise

Pacer ETFs has a dedicated team focused on developing and managing its suite of rules-based ETFs.

Goal

To seek long-term capital appreciation by investing in companies with high free cash flow yields and rotating into Nasdaq 100 stocks when the Cash Cows strategy underperforms.

Investment Approach and Strategy

Strategy: The ETF combines a cash flow yield strategy (COWZ) with a rotation strategy into the Nasdaq 100 (QQQ) based on relative performance.

Composition The ETF primarily holds stocks selected based on free cash flow yield (COWZ portion) and, when rotated, tracks the Nasdaq 100 index (QQQ portion).

Market Share: The market share is not readily available due to the specific rotational nature of this ETF, but it would be a small portion of the combined value and large-cap space.

Total Net Assets (AUM): 0

Key Competitors

• COWZ
• QQQ
• IVV
• SPY

Competitive Landscape

The ETF operates in a competitive landscape that combines factor-based (cash flow) and broad market (Nasdaq 100) investing. COWZ@'s advantage lies in its adaptive strategy, but it may underperform when the cash flow strategy is already working well.

Historical Performance: Requires live market data. Provide data points for 1yr, 3yr, and 5yr returns.

Benchmark Comparison: Requires live market data for meaningful comparisons. Relevant benchmarks include Russell 1000 (for COWZ portion) and Nasdaq 100 (for QQQ portion).

Expense Ratio: 0.49

Average Trading Volume

Requires live market data to assess trading volume.

Bid-Ask Spread

Requires live market data to assess bid-ask spread.

Market Environment Factors

The ETF's performance is influenced by factors affecting large-cap companies, particularly those with strong cash flow. Economic cycles and interest rate changes will affect returns. Technology sector health also impacts the QQQ rotation component.

Growth Trajectory

The growth trajectory depends on the effectiveness of the rotational strategy. Periods of strong cash flow performance will likely reduce QQQ exposure, and vice versa. Changes to the underlying methodologies of COWZ or QQQ could also affect future performance.

Competitive Edge

COWZ@'s competitive edge lies in its adaptive rotation strategy, aiming to capitalize on both free cash flow yield and Nasdaq 100 momentum. By dynamically allocating between these two strategies, the ETF seeks to enhance risk-adjusted returns and capture different market dynamics. This approach differentiates it from purely factor-based or index-tracking ETFs, potentially offering a more resilient investment strategy. However, rotational strategies can also experience periods of underperformance if the triggering mechanism lags behind actual market shifts, incurring trading costs along the way.

Volatility

Assess based on historical price fluctuations (standard deviation). Requires market data.

Market Risk

The ETF is subject to market risk, particularly from large-cap equities. Specific risks include sector concentration (e.g., technology in QQQ) and factor risk (e.g., value trap companies in COWZ).

Ideal Investor Profile

Investors seeking a blend of factor-based and growth-oriented strategies, with a willingness to accept potentially higher turnover and a moderately high risk profile.

Market Risk

Potentially suitable for long-term investors with a moderate to high risk tolerance, who believe in the potential of both value and growth stocks.

COWZ@ is a rotational ETF seeking capital appreciation by investing in high free cash flow companies and rotating into the Nasdaq 100 when the former underperforms. Its rotational strategy makes it a unique offering compared to standard factor-based and index-tracking ETFs. Investors should be aware of the potential for increased trading costs and possible underperformance during specific market cycles. The fund aims to capture benefits from both value and growth styles while dynamically adapting to market changes.

Data Sources:

• Pacer ETFs Website
• ETF.com
• Seeking Alpha
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.