COWG: PACER US LARGE CAP CASH COWS GROWTH LEADERS ETF
ETF Education Report: PACER US LARGE CAP CASH COWS GROWTH LEADERS ETF (COWG)
What this ETF is trying to do
The PACER US Large Cap Cash Cows Growth Leaders ETF (ticker: COWG) is an exchange-traded fund that holds a variety of companies. Based on its top holdings, the fund includes companies like Sandisk Corp, Iridium Communications Inc, and Western Digital Corp. This list is a partial view of the fund's holdings, which includes 103 total companies. Please remember that the companies held in an ETF can change over time.
What the numbers show
When looking at how an ETF performs, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price change and any cash distributions (dividends) paid out.
For COWG, the numbers show:
• Year-to-Date (YTD): The price return is approximately 16.47%, while the total return is approximately 17.17%.
• One-Year: The price return was approximately 11.50%, and the total return was approximately 12.36%.
• Three-Year: The price return was approximately 90.13%, and the total return was approximately 93.06%.
To give you an idea of price movement, the current price is $41.01. The estimated price from roughly one year ago was approximately $36.78.
Income and distribution explanation
Some investors look for ETFs that pay out cash, known as distributions. COWG has a distribution yield of approximately 0.72%. This means the cash distributed is about 0.72% of the ETF's price. The fund usually pays these out quarterly, and it has made 4 payments over the last 12 months. It is important to remember that a distribution yield is not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry that high payouts might cause the fund's value to shrink. However, for COWG, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• Strong Historical Returns: The fund has shown significant positive price and total returns over the one-year and three-year periods.
• Low Erosion Risk: According to the supplied data, there is no detected price erosion.
Cons
• Partial Data: The list of top holdings provided is only a partial list, so you are not seeing every company the fund owns.
• Lower Yield: The distribution yield is relatively low at approximately 0.72%.
Beginner takeaway
When studying COWG, notice the difference between price return and total return. The total return is higher because it accounts for the cash distributions paid to investors. While this ETF provides both price growth and some income, always remember that past performance does not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SANDISK CORP ORDINARY SHARES | SNDK | 4.55% |
| 2 | IRIDIUM COMMUNICATIONS INC | IRDM | 4.12% |
| 3 | WESTERN DIGITAL CORP | WDC | 3.81% |
| 4 | LAM RESEARCH CORP | LRCX | 2.84% |
| 5 | ASTERA LABS INC | ALAB | 2.69% |
| 6 | OKTA INC CLASS A | OKTA | 2.40% |
| 7 | FORTINET INC | FTNT | 2.20% |
| 8 | NETAPP INC | NTAP | 1.99% |
| 9 | PALO ALTO NETWORKS INC | PANW | 1.98% |
| 10 | CROWDSTRIKE HOLDINGS INC CLASS A | CRWD | 1.88% |