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Milking It for All It's Worth: Cash Cow ETFs Focus on Free Cash Flow

Milking It for All It's Worth: Cash Cow ETFs Focus on Free Cash Flow

Assessment

Interactive Video

Business

University

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

The video discusses Pacer US Cash Cows ETFs, focusing on two funds: COWS and CALF. COWS screens the Russell 1000 for the top 100 companies by free cash flow yield, while CALF uses the S&P Smallcap 600 index. Both funds target companies with strong cash flows and healthy balance sheets, weighting holdings by 12-month free cash flow and capping at 2% during quarterly rebalancing. COWS includes large companies like Dell and Apple, whereas CALF features smaller firms. COWS is larger with $250 million in assets and a lower expense ratio. Bloomberg Intelligence rates both funds positively for their alternative weighting approach.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of the 12-month free cash flow in the context of these funds?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

Which companies are included in the 'Cows' fund as mentioned in the text?

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