COWZ

What is COWZ?

Pacer ETFs launched the US Cash Cows 100 ETF back in December 2016. It was a bold move into the smart beta space, focusing on a metric that many traditional growth funds ignored: free cash flow yield. The idea was simple but effective—find companies that actually generate real cash after paying their expenses and capital expenditures. This approach distinguishes it from funds that might focus on nebulous earnings or aggressive growth targets that do not always translate to liquidity.

The core business model revolves around the Pacer US Cash Cows 100 Index. To get into the portfolio, a company must first be a member of the Russell 1000. From there, Pacer screens for the top 100 companies with the highest free cash flow yield over the trailing twelve months. By targeting this specific metric, the ETF essentially tilts toward high-quality value plays. These are often mature businesses in sectors like energy, materials, or healthcare that have disciplined management and the ability to return capital to shareholders through dividends or buybacks.

Since its inception, COWZ has hit several massive milestones. It really caught the market's attention during the 2022 downturn when its value-oriented, cash-heavy approach significantly outperformed tech-heavy benchmarks. Today, it stands as one of the most successful products in the Pacer lineup, with assets under management swelling past the $20 billion mark. Financially, the fund stays lean with a competitive expense ratio, relying on its rules-based methodology to rebalance quarterly and maintain exposure to the most efficient cash generators.

Looking ahead to 2026, the strategic outlook remains focused on resilience. In an era where interest rates might stay higher than the previous decade, companies with self-funding capabilities will likely have a major edge. The fund is positioned to capture gains from firms that can weather tighter credit conditions. As investors continue to shift from pure growth to quality and value, COWZ is expected to remain a cornerstone for those seeking defense without sacrificing the potential for capital appreciation through disciplined, cash-rich enterprises.

What is the XTRM Indicator?

The XTRM (Extreme) Indicator is a proprietary momentum indicator that measures cumulative time spent in extreme territory. Unlike traditional oscillators like RSI that measure a snapshot in time, XTRM accumulates how long an asset remains in oversold or overbought conditions, providing a deeper understanding of momentum exhaustion.

For COWZ, monitoring the XTRM indicator provides valuable insights into prolonged extreme conditions. When the XTRM drops significantly below zero (especially below -125), Pacer US Cash Cows 100 ETF has been in oversold territory for an extended period, suggesting potential for a reversal. Conversely, high positive XTRM values indicate extended overbought conditions.

Understanding COWZ XTRM Signals

• Deep Oversold (XTRM below -125): When COWZ XTRM falls below -125, it indicates prolonged time in extreme oversold conditions. This cumulative measure often provides stronger reversal signals than single-day oversold readings.
• Neutral Zone (XTRM near 0): When XTRM hovers around zero, COWZ is in a balanced state without extended extreme conditions. This can indicate consolidation or indecision in the market.
• Overbought (XTRM above +10): An XTRM above +10 indicates COWZ has been in overbought territory for an extended period, potentially signaling an overextended rally and increased risk of pullback.

Daily vs Weekly XTRM for COWZ

This page displays both daily and weekly XTRM for COWZ. The daily XTRM tracks short-term cumulative extremes, useful for identifying swing trading opportunities. The weekly XTRM provides a longer-term perspective on momentum exhaustion, helping investors spot major turning points.

By analyzing both timeframes together, you can identify when Pacer US Cash Cows 100 ETF is experiencing extreme conditions at multiple time scales, which often leads to the strongest reversal setups.

Historical XTRM Extreme Analysis

Above, we track historical instances when COWZ XTRM dropped below -125 (extreme oversold territory). These periods represent times when Pacer US Cash Cows 100 ETF spent extended periods in oversold conditions, which historically have presented some of the best buying opportunities. Analyzing how COWZ behaved after reaching these extreme XTRM levels can help inform future trading decisions.