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Why Cash Rich Companies, ETFs are Beating the Market

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  • (1:00) - Breaking Down The Recent Market Action: What To Expect Moving Forward
  • (5:25) - The Importance of Investing In Companies With High Cash Flow
  • (8:50) - Pacer US Cash Cows 100 ETF: COWZ
  • (12:30) - Should You Be Looking To Invest In The Global Markets?
  • (19:00) - The Pacer Trendpilot ETF Series
  • (22:40) - Pacer Lunt Large Cap Alternator ETF: ALTL
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Sean O’Hara, President at Pacer ETFs, about investing in cash-rich companies that have been able to weather the market storm this year.

Investors believe that “cash is king” in the current environment of surging inflation, rising rates, and a potential economic downturn. ETFs that hold cash-rich companies have seen a lot of interest from investors lately.

The Pacer U.S. Cash Cows 100 ETF (COWZ - Free Report) selects 100 US companies with strong cash flows and healthy balance sheets, from the Russell 1000 index. It has posted inflows of about $6.9 billion this year. Regeneron Pharmaceuticals (REGN - Free Report) , Valero Energy (VLO - Free Report)  and Occidental Petroleum (OXY - Free Report) are among its top holdings.

The Pacer Global Cash Cows Dividend ETF (GCOW - Free Report) selects developed-market large-cap companies that can continue to pay consistent dividends through free cash flow yield and dividend yield screens. Gilead Sciences (GILD - Free Report) and Exxon Mobil (XOM - Free Report) are its top holdings.

The Pacer Trendpilot US Large Cap ETF (PTLC - Free Report) switches between all equity, all T-bills or a 50/50 mix, depending on the S&P 500 Index value and its moving average. The fund, which is currently 100% invested in cash, has also significantly outperformed the broader indexes this year.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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