The COWSETF Index, Kelly US Cash Flow Dividend Leaders Index, performance is now available below with disclosures. The COWSETF Index utilizes a Forward FCF Yield and Trailing FCF Yield ranking system. Conversely, the Pacer US Cash Cows 100 Index uses only trailing free cash flow yield (hindsight bias), has unlimited sector exposure, and mandated to hold 100 positions (see Hawaiian Electric position in Q4 2023). There should be a focus on risk exposure and diversification, especially to avoid idiosyncratic sector risks. The COWSETF Index may minimize idiosyncratic risks by implementing an industry cap of 24%. Getting in and out of the right sectors at the right times is difficult for several reasons, including the nature of rebalancing and the lag effect.
Disclosures: Past performance is no guarantee of future results. Some of the performance presented herein is backtested performance. Backtested performance is not actual performance, but is hypothetical. The backtest calculations are based on the same methodology that is intended to be used when the index is officially launched. However, back-tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index. The index methodology and backtested performance is subject to change prior to inception. Charts, graphs, and graphics are provided for illustrative purposes only.