COWZ RSI

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 RSI?

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of price changes. Developed by J. Welles Wilder, RSI ranges from 0 to 100 and helps traders identify overbought or oversold conditions in an asset.

For COWZ, monitoring the RSI provides valuable insights into potential trend reversals and entry/exit points. When the RSI drops below 30, Pacer US Cash Cows 100 ETF is typically considered oversold, suggesting the asset may be undervalued. Conversely, an RSI above 70 indicates overbought conditions.

Understanding COWZ RSI Signals

• Oversold (RSI below 30): When COWZ RSI falls below 30, it suggests the asset may have been sold off excessively and could be due for a bounce. This is often viewed as a potential buying opportunity, though it's important to consider other factors and not rely solely on RSI.
• Overbought (RSI above 70): An RSI above 70 indicates COWZ may be overbought, potentially signaling a pullback or consolidation phase. Traders often use this as a signal to take profits or wait for better entry points.
• Divergences: When COWZ price makes new highs or lows but RSI doesn't confirm these moves, it can signal weakening momentum and a possible trend reversal.

Daily vs Weekly RSI for COWZ

This page displays both daily and weekly RSI for COWZ. The daily RSI responds quickly to short-term price movements, making it useful for day traders and swing traders. The weekly RSI provides a broader perspective on momentum trends, helping longer-term investors identify major oversold or overbought conditions.

By analyzing both timeframes together, you can better understand Pacer US Cash Cows 100 ETF's momentum at multiple levels and make more informed trading decisions.

Historical RSI Oversold Analysis

Above, we track historical instances when COWZ RSI dropped below 30 (oversold territory). Reviewing these past oversold levels helps identify patterns and understand how Pacer US Cash Cows 100 ETF has historically responded to oversold conditions. Many traders use these historical reference points to gauge potential support levels and timing for entry positions.