Pacer US Large Cap Cash Cows Growth Leaders ETF lags Russell 1000 by 17% amid tech-heavy portfolio risks.

The Pacer US Large Cap Cash Cows Growth Leaders ETF (COWG), launched in December 2022, holds 100 stocks selected for high free cash flow margins and weighted by momentum. Despite early gains, COWG has underperformed the Russell 1000 by 17% over the past year, largely due to significant sector concentration with nearly half its assets in technology stocks. Compared to similar cash flow-focused ETFs, VFLO offers better recent returns, lower risk, and higher liquidity. Investors should consider these factors when evaluating COWG's potential in their portfolios.