Pacer Global Cash Cows Dividend ETF

GCOW

Market cap $2.46B

GCOW offers diversified global exposure to high free cash flow and high dividend yield stocks, emphasizing value and income. The ETF's portfolio construction favors companies with strong free cash flow and dividend yields, resulting in lower P/E ratios than its benchmark. Key sector weights include health care, energy, and consumer staples, with top holdings like British American Tobacco and Chevron.

Many exchange-traded funds (ETFs) focus on holding dividend-paying stocks. While that gives income-seeking investors lots of options, it can make it difficult to know which is the best one to buy.

Dividend ETFs like TDV, TDIV, and GCOW are hitting 52-week highs as market volatility has boosted demand for steady income.

Exchange-traded funds (ETFs) make investing easy. These managed funds come with built-in diversification.

Making money usually requires a lot of effort. You have to actively work at a job.

I am upgrading GCOW to a buy due to improved momentum, attractive valuation, and strong alpha since my last review. GCOW offers high dividend yield and free cash flow exposure, appealing to value and income investors, with moderate risk and reasonable expenses. Energy sector overweight is a risk, but defensive allocations and large-cap value focus help cushion volatility; tech exposure is minimal.

Are you a retiree who's worried about the stock market? Now can be a concerning time to buy stocks, given the volatility.

I track about a thousand funds using Mutual Fund Observer and have developed a ranking system to group equity funds into four categories based on risk, valuation, and/or yield. Tier One contains the Lipper Categories and funds that have a combination of lower risk, lower valuations, and higher yields. Tier Two contains those with low to moderate valuations and have lower risk.

Pacer Global Cash Cows Dividend ETF warrants a hold rating due to mixed factors, including high fees and potentially low future dividend growth. GCOW offers global diversification with high free cash flow, but has the highest expense ratio among compared ETFs with relatively high payout ratios. A strong U.S. dollar along with high proposed tariffs risk future returns for many of GCOW's top holdings.

Dividend stocks can provide you with a lot of recurring income over the long term. But they can also prove to be risky investments to hold on their own because if a company's financials deteriorate, it may need to cut or stop its dividend.