At a glance
COWG charges 0.49% a year, above the 0.3% average of the 3 funds most like it (the 3rd cheapest of 4). It has $2.21B in assets, the 2nd largest of that group; it paid 0.7% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +13.0% with distributions reinvested (S&P 500: +11.5%), 3rd of those 4 funds; over three years it returned +27.1% a year. Its ten largest positions make up 28.4% of the fund, out of 100 in all.
The short version
Pacer US Large Cap Cash Cows Growth Leaders ETF (COWG) is an index fund holding 100 large US companies with the highest free cash flow margins. Free cash flow margin is the share of each dollar of sales left as cash after business spending. Unlike most index funds, it sizes holdings by recent price momentum, which tilts it toward fast-rising technology stocks. It costs 0.49% a year, above the 0.30% average of similar funds.
Price history
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COWG +13.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| COWG official prospectus, to Dec 31, 2025 | — | +10.33% | — | — | — | +20.32% |
| COWG price data to Oct 27, 2026 | +17.7% | +13.0% | +27.1% | — | — | +21.2% |
- Over the year to Oct 27, 2026, COWG returned +13.0%, 3rd of 4 among similar funds.
- Its worst full calendar year was 2025 (+10.3%); its best was 2024 (+35.0%).
- The deepest fall in its price history was 23.6% (Feb 18, 2025 to Apr 8, 2025), recovered by Sep 11, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +17.7% | — |
| 2025 | +10.3% | +10.33% |
| 2024 | +35.0% | +34.91% |
| 2023 | +20.6% | +20.57% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.2300 | |
| 2025 | $0.1150 | -11.5% |
| 2024 | $0.1300 | +30.0% |
| 2023 | $0.1000 |
What's inside
As of Jul 31, 2026, the fund held 100 securities; the ten largest made up 28.36% of assets.
| Holding | Weight | |
|---|---|---|
| Western Digital Corp | 4.53% | |
| Iridium Communications Inc | 4.25% | |
| Sandisk Corp | 3.32% | |
| Astera Labs Inc | 3.03% | |
| Lam Research Corp | 2.71% | |
| Fortinet Inc | 2.36% | |
| Okta Inc | 2.12% | |
| Datadog Inc | 2.05% | |
| Palo Alto Networks Inc | 2.03% | |
| F5 Inc | 1.96% | |
| NetApp Inc | 1.95% | |
| KLA Corp | 1.87% | |
| Crowdstrike Holdings Inc | 1.79% | |
| Southern Copper Corp | 1.68% | |
| Analog Devices Inc | 1.67% |
By country
United States 98.49%Ireland 1.45%By asset type
Stocks 99.94%By sector
Sectors of the companies held, for the 49.1% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $65.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.06%, +3.28%, -5.62%.
How it works
COWG tracks the Pacer US Large Cap Cash Cows Growth Leaders Index. Index Design Group, an affiliate of the fund's adviser, Pacer Advisors, builds the index. The starting pool is usually the Russell 1000 Index of large US companies. Financial and real estate companies are left out. So are companies with negative projected free cash flow or earnings over the next two fiscal years. Free cash flow is cash from operations minus capital spending, such as money spent on equipment and buildings.
The remaining companies are ranked by free cash flow margin (free cash flow divided by sales) over the past 12 months, and the top 100 go into the index. They are then weighted by a price momentum score, so stocks that have risen the most get bigger slices. No single company can be more than 5%. As of July 31, 2026, the largest holdings were Western Digital (4.5%), Iridium Communications (4.3%), Sandisk (3.3%), Astera Labs (3.0%) and Lam Research (2.7%). The top 10 made up 28.4% of assets.
The index is rebuilt every quarter, on the third Friday of March, June, September and December. Because momentum shifts, holdings change often. The prospectus reports portfolio turnover of 110%, which adds trading costs. The fund generally buys every index stock in the same proportions. It held no derivatives as of July 31, 2026.
What it really costs
- COWG charges 0.49% a year, versus an average of 0.3% for the similar funds below (3rd of 4, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $616 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| COWG | $50 | $157 | $274 | $616 |
In a retirement portfolio
Its momentum weighting, heavy technology tilt and one-year beta of 1.25 mean it swings more than the broad market, so it fits better as a smaller add-on than as a foundation.
COWG could add a growth tilt toward companies with high cash flow margins. Its record is short. It launched on December 21, 2022, so it has no history through the 2008, 2020 or 2022 downturns. Its deepest drop was 23.6%, from February 18 to April 8, 2025. It took about five months to recover, by September 11, 2025. Its weakest full calendar year, 2025, still gained 10.3%. Anyone who may need to sell shares in a bad year should expect bigger swings than the market. Its one-year beta, a measure of how much it moves compared with the market, was 1.25 as of October 27, 2026. Income is small, with a 0.7% yield paid quarterly. In the SEC's standard example, $10,000 invested costs $616 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want large US companies screened for high free cash flow margins, with extra weight on stocks that have strong recent price momentum.
- Those comfortable with a technology-heavy mix led by Western Digital, Iridium Communications and Sandisk as of July 31, 2026.
- Long-term holders adding a smaller growth slice who can live with drops like the 23.6% fall between February and April 2025.
Look elsewhere if
- Cost-focused investors: the 0.49% expense ratio is above the 0.30% average for similar funds and more than double QQQ's 0.20%.
- People seeking income: the yield was 0.7% as of October 27, 2026, paid quarterly.
- Investors who want a long track record: COWG launched in December 2022 and has no history through the 2008, 2020 or 2022 downturns.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What does COWG invest in?
COWG invests in 100 large US companies with the highest free cash flow margins, which the index calls “cash cows.” It tracks the Pacer US Large Cap Cash Cows Growth Leaders Index. The starting pool is usually the Russell 1000, and financial and real estate companies are left out. Stocks are weighted by price momentum, with each capped at 5%. As of July 31, 2026, the largest holdings were Western Digital, Iridium Communications, Sandisk, Astera Labs and Lam Research.
COWG vs QQQ: what's the difference?
QQQ is much cheaper and much larger. Its expense ratio is 0.20%, compared with COWG's 0.49%. It held about $490 billion as of June 30, 2026, against COWG's $2.2 billion as of July 31, 2026. Only about 21% of their holdings overlap, because COWG picks stocks by cash flow margin and weights them by momentum. Price returns have been similar. Both gained about 13% over one year through late October 2026. Over three years, COWG returned 27.1% a year and QQQ 28.2%.
Does COWG pay a dividend?
Yes, COWG pays dividends every quarter, but the amounts are small. Over the 12 months to October 27, 2026, it paid about $0.29 per share, a yield of 0.7%. The fund picks stocks by free cash flow margin and price momentum, not by dividends. Growth companies often reinvest cash rather than pay it out. Investors who want regular income from a fund would usually look at strategies built around dividends.
How has COWG performed since it launched?
COWG has posted gains every full year since it launched on December 21, 2022, though its record is short. According to its prospectus, it returned 20.57% in 2023, 34.91% in 2024 and 10.33% in 2025. That works out to an average of 20.32% a year from launch through December 31, 2025. Its strongest quarter gained 14.07% (ended June 30, 2025). Its weakest lost 3.8% (ended March 31, 2025). From the start of 2026 through October 27, 2026, its price return was 17.7%.
Is COWG good for retirement?
COWG may suit a smaller, higher-risk part of a retirement portfolio rather than the core. It tends to move more than the market: its one-year beta was 1.25 as of October 27, 2026. It fell 23.6% between February and April 2025 and recovered by September 2025. It pays little income, with a 0.7% yield, and charges 0.49% a year. Its history doesn't yet include a long bear market.