A popular ETF focused on cash flow is finding its footing again after lagging the broader market in the first half of 2023.
The Pacer U.S. Cash Cows ETF (COWZ) has set several recent highs over the past two weeks, including closing at a record $51.49 per share on Wednesday.
The index consists of Russell 1000 stocks with the best free cash flow yield.
"The rebalance every 90 day is sort of the key because it keeps the focus on the most current free cash flow yield, and the names with the highest free cash flow yield.
"When you focus on high free cash flow yield names, you actually end up owning companies who grow their earnings faster than their index," he added.
Persons:
COWZ, Russell, Sean O'Hara, Morningstar, O'Hara
Organizations:
The Pacer U.S, Cash, Nasdaq, Energy, Chevron, Booking Holdings