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One ETF that Alternates Between Value and Growth to Drive Gains

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Insight Blog Nasdaq Index Insights Provider

The Pacer Cash COWZ 100-Nasdaq100® Rotator ETF (QQWZ) alternates between US companies with high free cash flow yields, and the largest non-financial securities listed on the Nasdaq. This objective, rules-based strategy offers investors the chance to benefit from whichever index has the strongest momentum.

This dynamic allocation strategy combines two powerful brands: the Pacer US Cash Cows 100 Index (COWZ Index) and the Nasdaq100 Index®. These indexes give investors the chance to seek capital appreciation where it is strongest.

QQWZ operates off a simple technical signal by seeking to identify the sub-Index (the COWZ Index or the Nasdaq100 Index®) with the strongest momentum. The ETF is evaluated monthly so that the fund provides exposure to the COWZ Index or the Nasdaq-100 Index® at all times. The ETF structure allows this strategy to rotate in a tax-efficient way and manage growth and value allocations dynamically, eliminating guesswork and supporting core equity positioning.


The Power of Free Cash Flow

The Pacer US Cash Cows 100 ETF (COWZ) is a strategy-driven ETF that aims to provide capital appreciation over time by screening the Russell 1000 for the top 100 companies based on free cash flow yield.

Free cash flow is the cash remaining after a company has paid expenses, interest, taxes, and long-term investments. Companies can use free cash flow to buy back stock, pay dividends, or participate in mergers and acquisitions. A greater free cash flow yield means more opportunities to invest in growth. This strategy also exposes investors to opportunities in the market where quality stocks are trading at a discount. Using free cash flow yield to measure a company’s sustainability may produce higher returns and more attractive upside/downside capture over time.


Capitalizing on Momentum

By using a momentum strategy based on equal-weighted average monthly returns, QQWZ positions investors to benefit from the potential capital appreciation of rising equities. This approach is important in a market setting characterized by uncertainty. With QQWZ, investors can rely on the combination of a core holding and a tactical approach that offers rotation between market styles as a way to potentially build a more resilient portfolio.

The basic idea behind a momentum strategy is that investors can benefit from the continuation of existing market trends. Equities experiencing an upward trend in prices offer investors the chance to gain from the likelihood that strong performers will continue to rise.

 


Nasdaq®, Nasdaq-100 Index®, and Nasdaq-100®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use Pacer Financial, Inc.,. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s).

Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus. A copy may be obtained by visiting www.paceretfs.com or calling 1-877-337-0500. Please read the prospectus carefully before investing.

An investment in the Funds is subject to investment risk, including the possible loss of principal. Pacer ETF shares may be bought and sold on an exchange through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained. The risks associated with this fund are detailed in the prospectus and could include factors such as calculation methodology risk, concentration risk, equity market risk, ETF risks, high portfolio turnover risk, index provider risk, large- and mid-capitalization investing risk, new fund risk, non-diversification risk, passive investment risk, sector risk, tracking error risk and/or special risks of exchange traded funds.

Free Cash Flow Yield (Free Cash Flow/Enterprise Value) measures a company’s total free cash flow relative to its enterprise value. This is an internal statistic and does not constitute investor yield.

Pacer Cash Cows ETFsTM and Cash Cows Index® are registered trademarks of Index Design Group, LLC.

Distributor: Pacer Financial, Inc., member FINRA, SIPC, an affiliate of Pacer Advisors, Inc.

NOT FDIC INSURED | MAY LOSE VALUE |NOT BANK GUARANTEED

© 2025. Nasdaq, Inc. All Rights Reserved.

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