RIET - SCHD Vs. COWZ: One Is A Superior Investment Choice

2024-01-29 23:13:23 ET

Summary

• The Schwab U.S. Dividend Equity ETF and the Pacer US Cash Cows 100 ETF both offer investors factor exposure to value, free cash flow, and higher dividends.
• This article will present both funds side by side to determine which is the superior investment choice.
• Comparisons include factor exposure, index methodology, fund holdings, and the SA Quant ratings.

Introduction

Investors have many options when it comes to equity exposure, especially in the field of value-oriented, dividend-equity funds. In this column, I present the two best choices for investors in this sector, the Schwab U.S. Dividend Equity ETF ( SCHD ), and the Pacer US Cash Cows 100 ETF ( COWZ ). Both funds aim to accomplish similar objectives but use different methodologies and strategies in their portfolios.

Both of these funds hold a similarly sized portfolio of about 100 stocks, focus on the quality and value factors in their portfolios; and offer investors exposure to an index unique to the respective ETFs. Neither SCHD nor COWZ have any direct competition for their index.

In this column, I am going to directly compare these funds to determine which is more suitable for investors to hold as an equity component in their portfolio....

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