Milking It for All It's Worth: Cash Cow ETFs Focus on Free Cash Flow

The video discusses Pacer US Cash Cows ETFs, focusing on two funds: COWS and CALF. COWS screens the Russell 1000 for the top 100 companies by free cash flow yield, while CALF uses the S&P Smallcap 600 index. Both funds target companies with strong cash flows and healthy balance sheets, weighting holdings by 12-month free cash flow and capping at 2% during quarterly rebalancing. COWS includes large companies like Dell and Apple, whereas CALF features smaller firms. COWS is larger with $250 million in assets and a lower expense ratio. Bloomberg Intelligence rates both funds positively for their alternative weighting approach.

What is the significance of the 12-month free cash flow in the context of these funds?

Which companies are included in the 'Cows' fund as mentioned in the text?