GET DAILY SIGNALSCOWZ vs VFLO: Comparing Two Free Cash Flow ETFs
Key Takeaways
- Both funds target companies with strong free cash flow (FCF), but COWZ holds roughly 100 names while VFLO concentrates in about 50, giving VFLO higher single-stock risk.
- VFLO is the cheaper option at a 0.39% expense ratio versus COWZ's 0.49%.
- VFLO carries a heavier tilt toward technology and energy, while COWZ spreads exposure more evenly across technology, healthcare, and energy.
- COWZ launched in 2016 and has a longer operating history; VFLO is newer, having debuted in 2023.
- Tickeron AI Verdict: COWZ — broader diversification and a longer track record currently outweigh VFLO's lower cost.
Introduction
Investors looking to capture the free cash flow factor—essentially the cash companies generate after meeting their operating and capital needs—have shown growing interest in rules-based ETFs. The Pacer US Cash Cows 100 ETF (COWZ) and the VictoryShares Free Cash Flow ETF (VFLO) stand out as leading options in this category. Both follow passive, index-based strategies focused on cash-rich firms, yet they differ in concentration, fees, and sector allocations. This comparison reviews their structures, exposures, and positioning to clarify how each might fit in a portfolio.
Pacer US Cash Cows 100 ETF (COWZ) Overview
COWZ tracks the Pacer US Cash Cows 100 Index through a rules-based selection of roughly 100 large- and mid-cap U.S. companies with the highest free cash flow yields from the Russell 1000 universe. The fund typically maintains 100 to 103 holdings and rebalances quarterly. Sector weights lean toward technology (about 23–26%), healthcare (around 20–22%), and energy (roughly 12–20%), with smaller stakes in consumer areas and no significant financials or utilities exposure. Recent top holdings include CRM, MPC, VLO, ACN, and NEM. Its 0.49% expense ratio supports a broadly diversified lineup that keeps single-stock risk relatively contained. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
VictoryShares Free Cash Flow ETF (VFLO) Overview
VFLO follows the Victory U.S. Large Cap Free Cash Flow Index, selecting about 50 companies from the S-Network U.S. Equity Large/Mid-Cap 1000 universe with an emphasis on both free cash flow yield and growth metrics. It holds around 52 securities through full replication. Technology dominates at roughly 27–35%, followed by energy (22–24%) and healthcare (17–21%), with modest exposure elsewhere. Top recent holdings include MU, ADBE, ACN, XOM, and CI. At 0.39%, its expense ratio is lower, though the concentrated portfolio means the top 10 holdings carry more weight, increasing individual-stock risk.
Industry and Thematic Context
Both ETFs operate in the value-and-quality segment of U.S. equities, where self-funding companies with solid balance sheets have appealed amid tighter financing conditions. Higher interest-rate expectations have favored cash-generative names, while energy exposure in each links performance to commodity trends and capital discipline. Technology's prominence reflects high-margin software and semiconductor firms generating substantial free cash flow. Risks include shifts away from value toward growth stocks, earnings pressure in energy or healthcare, and the inherent concentration from cash-flow screens that can emphasize cyclical sectors.
Performance and Positioning
Recent cycles have rewarded both funds as investors sought cash-rich, quality equities. VFLO's heavier technology and energy tilt has increased sensitivity to momentum in those areas, whereas COWZ's more even spread has contributed to a lower beta and steadier relative behavior. Concentration differences become evident in sector-specific downturns: VFLO's smaller roster can magnify moves in key holdings, while COWZ's broader lineup helps moderate idiosyncratic risk. Cost-focused investors might prefer VFLO's fee advantage, while those valuing diversification and a longer history may favor COWZ.
Tickeron AI Verdict
Structural factors point Tickeron's AI toward COWZ at present. Its roughly 100-name portfolio delivers wider diversification and reduced single-stock concentration compared with VFLO's approximately 52 holdings, lowering idiosyncratic risk while still accessing the free cash flow premium. COWZ also benefits from a track record since 2016, a more balanced sector mix, and lower historical beta for more consistent risk-adjusted results. VFLO offers a cost edge at 0.39% and stronger exposure to higher-momentum technology and energy names, yet its concentration and shorter history add volatility. Overall, the AI assigns a higher likelihood of favorable risk-adjusted outcomes to COWZ in the current setting.
Exploring Tools for ETF Research
In my own analysis, I have found Tickeron's AI Screener helpful for quickly comparing ETF holdings, sector weights, and performance metrics. It allows filtering by fundamentals, volatility, and technical signals, which can streamline the process of evaluating options like these two funds without manual effort. The tool has assisted me in spotting relative strengths across similar strategies.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
COWZ in upward trend: price may jump up because it broke its lower Bollinger Band on November 05, 2026
COWZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 34 of 38 cases where COWZ's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
COWZ moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for COWZ crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 88%.
Following a +1.22% 3-day Advance, the price is estimated to grow further. Considering data from situations where COWZ advanced for three days, in 271 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
The Aroon Indicator entered an Uptrend today. In 270 of 338 cases where COWZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 80%.
Bearish Trend Analysis
The 10-day RSI Indicator for COWZ moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 31 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 79%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 50 of 66 cases where COWZ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 76%.
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on COWZ as a result. In 68 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
The Moving Average Convergence Divergence Histogram (MACD) for COWZ turned negative on November 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 40 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 83%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COWZ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
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