Why Cash-Rich Companies And #ETFs Are Beating The Market?

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Investors believe that “cash is king” in the current environment of surging inflation, rising rates, and a potential economic downturn. ETFs that hold cash-rich companies have seen a lot of interest from investors lately.

The Pacer U.S. Cash Cows 100 ETF (COWZ - Free Report) selects 100 US companies with strong cash flows and healthy balance sheets, from the Russell 1000 index. It has posted inflows of about $6.9 billion this year. Regeneron Pharmaceuticals (REGN - Free Report), Valero Energy (VLO - Free Report), and Occidental Petroleum (OXY - Free Report) are among its top holdings.

The Pacer Global Cash Cows Dividend ETF (GCOW - Free Report) selects developed-market large-cap companies that can continue to pay consistent dividends through free cash flow yield and dividend yield screens. Gilead Sciences (GILD - Free Report) and Exxon Mobil (XOM - Free Report) are its top holdings.

The Pacer Trendpilot US Large Cap ETF (PTLC - Free Report) switches between all equity, all T-bills or a 50/50 mix, depending on the S&P 500 Index value and its moving average. The fund, which is currently 100% invested in cash, has also significantly outperformed the broader indexes this year.


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