⚖️ COWZ vs VTV Comparison · Free & No Signup

COWZ vs VTV: Free Cash Flow Value vs Traditional Value Indexing

COWZ selects 100 stocks with the highest free cash flow yields. VTV owns 340 large-cap value stocks the traditional way. They look similar but work very differently.

💰 VTV is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

Different Philosophies — COWZ Has Outperformed But Costs Far More

COWZ (Pacer US Cash Cows 100 ETF) and VTV (Vanguard Value ETF) both tilt toward "value" stocks but define value very differently. VTV tracks the CRSP US Large Cap Value Index — 340 large-cap US stocks that screen as value based on price-to-book, price-to-earnings, and similar metrics. It charges 0.04%, making it one of the cheapest value ETFs available. COWZ takes a different approach: it screens the Russell 1000 for the 100 companies with the highest free cash flow yield and rebalances quarterly. This active selection philosophy has driven strong returns but costs 0.49% — more than 12x VTV's expense ratio. COWZ outperformed VTV meaningfully from 2020-2023, but investors pay significantly for that approach.

📋 Quick Takeaways

🐄COWZ selects 100 stocks by free cash flow yield — a cash-generation quality screen, not traditional value metrics

💰VTV costs 0.04%; COWZ costs 0.49% — COWZ is 12x more expensive

📈COWZ has outperformed VTV in recent years — but the much higher fee creates a high performance hurdle to justify the cost

📊 Data-Based Take: VTV has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

✓ Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice

COWZ

Pacer US Cash Cows 100 ETF

Expense Ratio

0.49%

1-Year Return

+13.5%

AUM

$17.6B

Holdings

100

VTV

Vanguard Value Index Fund ETF Shares

Expense Ratio

0.04% ✓

1-Year Return

+22.8%

AUM

$237.8B

Holdings

340

📋 COWZ vs VTV — Key Facts Side by Side

Metric	COWZ	VTV
Fund Name	Pacer US Cash Cows 100 ETF	Vanguard Value Index Fund ETF Shares
Issuer	Pacer	Vanguard
Tracks Index	Pacer US Cash Cows 100	CRSP US Large Cap Value
Expense Ratio	0.49%	0.04% ✓
Cost per $10K/yr	$49.00	$4.00
AUM	$17.6B	$237.8B
Holdings	100	340
Inception	2016	2004
1-Year Return	+13.52%	+22.84%
3-Year Return	+12.49%	+18.46%
5-Year Return	+10.35%	+12.27%
Dividend Yield	1.99%	1.88%
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.01%	0.00%

Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 COWZ vs VTV — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...

COWZ

want focused large-cap US stock exposure via Pacer US Cash Cows 100
already use Pacer and prefer staying within one fund family

Often fits investors who...

VTV

want the lowest fees: saves ~$45/yr per $10K vs COWZ
want broader diversification (340 holdings vs 100)
want focused large-cap US stock exposure via CRSP US Large Cap Value

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Investment amount$ Years held Expected annual return%

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ COWZ vs VTV — Frequently Asked Questions

What is COWZ and how does it work?

COWZ (Pacer US Cash Cows 100 ETF) takes the Russell 1000 universe and selects the 100 companies with the highest trailing 12-month free cash flow yield (free cash flow divided by enterprise value). Holdings are weighted by free cash flow yield. The portfolio rebalances quarterly. The strategy is designed to find highly profitable, cash-generating businesses trading at reasonable valuations — distinct from traditional price-to-book or P/E based value screens.

Is COWZ worth the 0.49% expense ratio vs VTV's 0.04%?

That depends on whether COWZ's outperformance persists. COWZ has delivered strong returns since its 2016 launch, and its free cash flow screen has academic support as a quality indicator. However, 0.49% creates a significant hurdle: COWZ needs to outperform VTV by nearly half a percentage point per year just to break even on fees. Long-term, whether active factor screens beat passive indexing is an open question. VTV's near-zero cost is a guaranteed advantage.

How does VTV compare to SCHV or IVE?

VTV, SCHV, and IVE are all large-cap value ETFs using traditional metrics. VTV tracks CRSP US Large Cap Value; SCHV tracks Dow Jones US Large-Cap Value; IVE tracks the S&P 500 Value index. All charge between 0.04% and 0.18% and have very similar performance. VTV is the largest and most widely held. Differences are minor — pick based on cost and your brokerage.

What is free cash flow yield and why does COWZ care about it?

Free cash flow (FCF) is the cash a company generates after capital expenditures — essentially how much real money the business produces. FCF yield is FCF divided by enterprise value (market cap + debt - cash). A high FCF yield means you're getting a lot of cash generation relative to what you're paying. This metric screens for financially strong, genuinely profitable businesses — filtering out companies that look cheap on earnings but burn cash.

Is COWZ appropriate for a long-term portfolio?

COWZ can be a legitimate satellite holding for investors who believe in free cash flow quality as an investment screen. Its 0.49% fee and quarterly rebalancing make it more expensive and potentially less tax-efficient than passive alternatives. It's best viewed as a deliberate active tilt, not a core holding. For most investors building a long-term portfolio, VTV or a low-cost value index serves as a better core value position.

New to ETF investing? See answers to the most common ETF questions →

📄 COWZ & VTV Fact Sheets

COWZ Fact Sheet→ VTV Fact Sheet→

ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.