IWD - Pacer US Cash Cows 100 ETF: Time To Plan An Exit Strategy

• The Pacer US Cash Cows 100 ETF selects 100 Russell 1000 securities based on free cash flow yield. Financial companies, other than REITs, are excluded, and fees are 0.49%.
• At the moment, COWZ is a commodity-driven ETF that's overweight oil and gas, steel, and commodity chemicals. It also has large positions in volatile biotechnology stocks like Moderna.
• Pacer's selections result in an ultra-low 10.48 forward P/E ratio, 17.79% forward EPS growth, and a 1.35 five-year beta. Market capitalization is on the low end at $63 billion.
• COWZ seems like an excellent inflation hedge. However, it will be slow to respond once inflation is controlled. The use of trailing instead of projected cash flows is a flaw.
• This ETF is not for me. There are easier and cheaper ways to defend against inflation, and investors should be prepared for a return to underperforming years like from 2017-2019.

For further details see: