COWZ Vs. COWS Vs. VFLO: Battle For The Future Of Value Investing

seekingalpha04-19

andresr I love analyzing ETFs for one simple reason. I love owning ETFs, and there's an excellent reason for this. While we all dream of being the next Warren Buffett, Joel Greenblatt, Peter Lynch, or...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2428632705?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1175286086/image_1175286086.jpg","is_english":true,"pubTime":"2024-04-19 19:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2428632705","market":"us","top_or_hot":-1,"title":"COWZ Vs. COWS Vs. VFLO: Battle For The Future Of Value Investing","media":"seekingalpha","content":"<div>\n<p>andresr I love analyzing ETFs for one simple reason. I love owning ETFs, and there's an excellent reason for this. While we all dream of being the next Warren Buffett, Joel Greenblatt, Peter Lynch, or...</p>\n\n<a href=\"https://seekingalpha.com/article/4684532-cowz-vs-cows-vs-vflo-battle-for-the-future-of-value-investing\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>COWZ Vs. COWS Vs. VFLO: Battle For The Future Of Value Investing</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCOWZ Vs. COWS Vs. VFLO: Battle For The Future Of Value Investing\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-19 19:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4684532-cowz-vs-cows-vs-vflo-battle-for-the-future-of-value-investing><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>andresr I love analyzing ETFs for one simple reason. I love owning ETFs, and there's an excellent reason for this. While we all dream of being the next Warren Buffett, Joel Greenblatt, Peter Lynch, or...</p>\n\n<a href=\"https://seekingalpha.com/article/4684532-cowz-vs-cows-vs-vflo-battle-for-the-future-of-value-investing\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ALB","symbol_name":"美国雅保","start_time":0,"source_url":"https://seekingalpha.com/article/4684532-cowz-vs-cows-vs-vflo-battle-for-the-future-of-value-investing","article_id":"2428632705","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1175286086/image_1175286086.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2428632705","pubTimestamp":1713524400,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"But alas, \"just buying winners\" is impossible to do. From 1926 to 2018.  60% of all companies lost money. 38% of companies were flat. 2% of companies generated 100% of net cumulative stock market profits. Apple  alone generated 5% of all stock market gains.  The Genius Of Strategy ETFs Ritholtz Wealth Management For 220 years, US stocks have delivered about 10% annual returns, doubling investors' money every seven years and, adjusted for inflation, doubling investors' money every decade. If S&P index funds had existed in 1802, $1 would be worth $2.4 million today, adjusted for inflation. S&P has been up 21% since June 2023. The S&P is a strategy index. The strategy?US companies are wonderfully adaptable and will keep pivoting to any challenges to generate enviable profits for investors forever. Being market cap-weighted means that the S&P is the ultimate meritocracy. The world-beater giants always rise to the top. What is the next Amazon ?Those companies have the moats and tech advanta","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ALB":"美国雅保","BK4575":"芯片概念","LU0109392836.USD":"富兰克林科技股A","COWS":"Amplify Cash Flow Dividend Leaders ETF","LU2063271972.USD":"富兰克林创新领域基金","COWZ":"Pacer US Cash Cows 100 ETF","VFC":"威富集团","ZM":"Zoom","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","T":"美国电话电报","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","VFLO":"VictoryShares Free Cash Flow ETF","LU0444971666.USD":"天利全球科技基金","MO":"奥驰亚","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","COIN":"Coinbase Global, Inc.","MSFT":"微软","TSLA":"特斯拉","NVDA":"英伟达","AAPL":"苹果","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","FDN":"First Trust Dow Jones Internet I","ALB.AU":"Albion Resources Limited","LU0056508442.USD":"贝莱德世界科技基金A2","ARKK":"ARK Innovation ETF","BK4507":"流媒体概念","BK4585":"ETF&股票定投概念","BK4571":"数字音乐概念","BK4576":"AR"},"translate_title":"考兹对奶牛对VFLO：为价值投资的未来而战","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NVDA":1,"ZM":1,"VFLO":1,"VFC":1,"TSLA":1,"T":1,"AAPL":1,"MSFT":1,"MO":1,"COWZ":1,"COIN":1,"ALB":1,"ALB.AU":1,"ARKK":1,"COWS":1,"US3Y.BOND":0.9,"FDN":0.9,"US7Y.BOND":0.9,"US6M.BOND":0.9,"US5Y.BOND":0.9,"US30Y.BOND":0.9,"US2Y.BOND":0.9,"US12M.BOND":0.9,"US10Y.BOND":0.9,"US912797FH58.BOND":0.6,"US912797HH31.BOND":0.6,"US912797HG57.BOND":0.6,"US912797HE00.BOND":0.6,"US912797GW17.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GB79.BOND":0.6,"US912797FS14.BOND":0.6,"US912796CX52.BOND":0.6},"content_text":"andresr I love analyzing ETFs for one simple reason. I love owning ETFs, and there's an excellent reason for this. While we all dream of being the next Warren Buffett, Joel Greenblatt, Peter Lynch, or Charlie Munger, there's a reason those legendary investors are so famous. Charlie Bilello Stock picking is much harder than most people realize. 92% of professional fund managers cannot match their benchmarks over 10 to 20 years. And here's why. Benchmarks tend to be strategy ETFs. Even the simple S&P 500 market cap index is a strategy index. Strategy indexes mean you're not betting on any individual company. You're betting on the strategy itself. Strategy ETFs - The Gold Standard of Long-Term Compounding Active management requires stock picking. The ARK Innovation ETF (ARKK) as one famous example. You might recall that ARKK became famous in 2020 when it soared 150% in a single year. When ARKK was at its peak, thanks to Tesla soaring 1000% in 2020 and being 10% of ARKK's portfolio (100% of the 150% 2020 gain was from Tesla), investors poured more than $10 billion into ARKK right at the peak. Charlie Bilello ARKK is primarily speculative technology, i.e., \"non-profitable tech,\" which means that when it falls 76%, that's not necessarily the same kind of long-term buying opportunity as buying the Nasdaq in 2002 after it had fallen 82%. Charlie Bilello Remember that ARKK is constantly changing. Cathie Wood posts her daily trades with complete transparency. ARK 25% of the portfolio is Tesla (TSLA), Coinbase (COIN), and Zoom (ZM), companies that analysts are deeply worried about with regard to long-term growth outlooks. Cathie is a maverick, and anyone buying ARKK is not betting on the rise of the next generation of innovation. They're betting she will get lucky again. Ritholtz Wealth Managers Imagine you were 10% invested each in 10 of these companies. The best-performing stocks in US history? But alas, \"just buying winners\" is impossible to do. From 1926 to 2018.  60% of all companies lost money. 38% of companies were flat. 2% of companies generated 100% of net cumulative stock market profits. Apple (AAPL) alone generated 5% of all stock market gains.  The Genius Of Strategy ETFs Ritholtz Wealth Management For 220 years, US stocks have delivered about 10% annual returns, doubling investors' money every seven years and, adjusted for inflation, doubling investors' money every decade. If S&P index funds had existed in 1802, $1 would be worth $2.4 million today, adjusted for inflation. S&P has been up 21% since June 2023. The S&P is a strategy index. The strategy? US companies are wonderfully adaptable and will keep pivoting to any challenges to generate enviable profits for investors forever. Being market cap-weighted means that the S&P is the ultimate meritocracy. The world-beater giants always rise to the top. What is the next Amazon (AMZN)? Or Nvidia (NVDA)? Or Microsoft (MSFT)? Those companies have the moats and tech advantage to remain on top for the foreseeable future. If companies surpass those giants for tech innovation and become even better, they will eventually dominate the S&P. By owning the S&P, you never have to worry whether you're overweight, a red-hot name like Tesla (TSLA) that's now falling from grace and giving Cathie Wood such angst. My Favorite ETF Strategy - Free Cash Flow Yield I'm 100% data-driven in every aspect of my life. To paraphrase Churchill: \"Living your life based purely on the best available evidence is the worst possible idea. Except for all the alternatives.\" And here's the most impressive backtest I've ever seen regarding investing strategies. PacerPacer Free cash flow yield is free cash flow, Buffett's \"Owner earnings\" divided by the actual cost of buying the company, including debt. The average annual returns from buying companies based on this quality/valuation metric over the last 33 years averaged over 17% annually, with lower volatility than any other valuation metric or the market in general. The volatility/adjusted returns were 2X that of the Russell 1000 (1000 largest US companies). This has led to several ETFs, starting with the Pacer 100 Cash Cows (COWZ), which then gave birth to an entire family of FCF yield ETFs, from small caps to international and emerging markets. With cash-adjusted PEs as low as 5X for emerging markets (though those companies might be cheap for a reason). The rise of COWZ and its $22 billion in assets under management has given rise to many rivals, like the VictoryShares Free Cash Flow Yield ETF (VFLO) and now the Amplify Cash Flow Dividend Leaders ETF (COWS). I think the similarity in tickers might be on purpose. Perhaps Amplify thinks some investors will buy COWS trying to buy COWZ by mistake. I've recently done two deeper looks into VFLO and COWZ. But today, I'd like to compare and contrast these two FCF yield ETFs, which I own, and a member requested to look at COWS and see if its version of this proven investing strategy might make it worth owning. Given that 6.1% of my ZEUS Family Fund are in deep-value FCF yield ETFs, I care deeply about this question. So, let's compare VFLO, COWZ, and COWS so you can decide which is best for your portfolio's needs. Let's compare and contrast these three ETFs on five metrics.  Strategy/Portfolio Construction Methodology Top 50 Holdings and Growth Prospects Strengths Weaknesses Total Return History  Strategy/Portfolio Construction Methodology Amplify Like VFLO COWS, it combines future and past free cash flow. COWZ uses a pure 12-month trailing FCF metric to be conservative. COWS equals its portfolio, while VFLO and COWZ weigh by FCF yield using risk caps of 2% for COWZ and 4% for VFLO. Amplify The yield for COWS isn't incredibly high, but 2% is still better than the S&P's 1.5%.  VFLO 1.2% yield COWZ 2.2%  COWS pays monthly dividends, though keep in mind that since it's a high-turnover strategy, the yield is variable, and so are monthly dividends. Amplify Essentially, COWS takes the Russell 1000 and selects the 10% highest FCF-yielding companies, similar to what COWZ does. However, like VFLO, Amplify uses a combination of equal-weighted backward and forwards, looking for free cash flow. In other words, they blend the past with the consensus future to avoid buying energy stocks or basic materials at the peak of a commodity boom, like the one we saw in 2022. It also adds a dividend streak similar to SCHD or VIG, though just a three-year cutoff to eliminate variable payers (usually commodity and cyclical companies). The payout ratio cutoff and elimination of the top 10% yielding names is a safety/quality screen. I'll review its strengths and weaknesses in a few minutes. Finally, Amplify takes the top 40 remaining companies and weighs them equally into a concentrated portfolio of 2.5% weighted companies. Fisher et Al Forty stock portfolios are not too concentrated. Some research indicates that as few as 15 stocks are sufficient to achieve 85% of the diversification benefits.  VFLO owns 50 companies COWZ 100 companies  Amplify Amplify's well-reasoned approach to quality value, doubling safety and even more quality, and running a concentrated portfolio, results in an incredible free cash-flow yield of 10%, almost 2.5X more than the S&P. The Index is reconstituted and rebalanced quarterly after the close of business on the third Friday of each March, June, September, and December.\" - Amplify (COWS prospectus) Like VFLO and COWZ, Amplify's ETF is rebalanced quarterly to ensure it always owns the best-valued high-quality dividend growth stocks. OK, so how about VFLO and COWZ? How COWZ Selects Its Holdings Pacer COWZ starts with a similar group of companies, as the Russell 1000 and Syntax 1000 are virtually identical. The 1000 largest US companies are also the 1000 most liquid companies. The same top 10% FCF yield strategy, but COWZ uses a 12-month trailing FCF. And then COWZ weights by FCF with a 2% risk cap. It's rebalanced every quarter, ensuring the best valuations.  FCF yield ETFs are always good buys. By definition, there are no better values than the lowest-value quality blue chips. In other words, COWZ, COWS, and VFLO can never be \"overvalued\" since they rebalance every three months.  How VFLO Selects Its Holdings VictoryShares VFLO starts with the S&P 400 and selects the 75 highest FCF yield companies. Equal weighted 12-month trailing and 12-month consensus future FCF. Sales trends, EBITDA, and long-term earnings growth are included in the growth score. The bottom 33% of slow growers are dropped, resulting in 50 companies. These are then weighted by FCF yield with a 4% risk cap. Sectors are capped at 45%, with no sector allowed to be more than 20% above the sector weights of the S&P 400. The results are impressive, with an FCF yield of 9%, almost three times more than the S&P 400, and a nearly identical growth profile. That means the FCF PEG ratio is almost three times better for VFLO than the S&P 400 (which is nearly identical to the S&P 500). VictoryShares VFLO's 32-year backtest indicates that its growth screen can boost returns to an incredible 17.6% since 1991. A 151X return vs. S&P 500's 22X. 17.6% vs. 9.8% annually for a third of a century through.  Four economic cycles. Two 50%-plus crashes. Six bear markets. Interest rates range from 0% to 7%. Inflation between -2.5% and 9.2%  Top 50 Holdings Including Growth Prospects Fundvisualizer Fundvisualizer Fundvisualizer Fundvisualizer Fundvisualizer Fundvisualizer V.F. Corporation (VFC) and AT&T (T) have cut their dividends and will be eliminated from COWS soon. OK, so how about the growth prospects for these portfolios? Amplify - COWS 12.1% CAGR EPS Growth Through 2026 FactSet Research Terminal Pacer COWZ 8.6% CAGR EPS Growth Through 2026 FactSet Research Terminal VFLO 11.6% CAGR EPS Growth Through 2026 FactSet Research Terminal Strengths Here are the strengths of each ETF. Amplify COWS Amplify's focus on dividend growth as a safety and quality screen is a nice touch, similar to what SCHD and VIG do. It's unique among FCF yield ETFs. The highest FCF yield of the three also indicates highly attractive valuations, and the growth prospects are the best for the current portfolio. Cash-Adjusted PEG Ratio  Amplify COWS. 0.55 Pacer COWZ. 0.79 VFLO. 0.59  These low PEG ETFs are extraordinary values, assuming those growth estimates are realized. Pacer COWZ The most proven FCF yield ETF. Top 1% of value ETFs in absolute and tax-adjusted returns over the last five years. COWZ has avoided most of the value FOMO that has plagued value ETFs since the Financial Crisis ended and big tech took off. Ycharts The most conservative FCF valuation metric, trailing 12 months. There's no speculation or uncertainty about what has already happened. VictoryShares The focus on maximum deep value and quality through a concentrated portfolio with FCF weighting that also screens for growth is very appealing. It's the highest historical backtest I've seen for any ETF strategy. Only BAM's 20% annual returns over 40 years beat this historical return. In other words, this one has the strongest and most statistically significant backtest results of all possible investing strategies.  97% statistical probability that VFLO's strategy is a great strategy. It will likely become a 5-star rated ETF within three years and probably outperform the S&P long. Or at least keep up with it if big tech keeps dominating as expected for the foreseeable future.  I've included VFLO in my \"Shadow ZEUS\" index, which I track in my quarterly retirement portfolio review. Shadow Index Returns Since December 2023 Portfolio Visualizer Weaknesses Amplify COWS I'm unsure why AT&T and VF Corp are still in COWS, since they cut their dividends several quarters ago. Ycharts Amplify COWS has only been around since September 2023, so there isn't much history to work with. However, the returns thus far are impressive, surpassing the S&P, Vanguard value, and COWZ and running circles around popular income ETFs like SCHD and NOBL. One of the quality screens, which has no top 10% yielders or payout ratios above 75%, will screen out low-risk yield leaders like Altria (MO) and British American.  According to rating agencies, MO has a policy of paying out 80% of earnings as dividends, vs. 85% at a safe level. British American's yield is at 25-year highs (it's also not in the S&P, so no FCF yield ETF will own it).  But the point is that there are some incredible ultra-yield names worth owning that Amplify's quality screen will eliminate. Pacer COWZ The biggest downside to COWZ is its focus on 12-month trailing FCF. Yes, a 12-month FCF is not speculative. Analysts do not need to forecast growth correctly (using management guidance). However, as we briefly saw in 2022, FCF yields will be highest in a commodity boom, such as $130 oil. That worked well in 2022 as energy was the No. 1 sector (for two consecutive years), and COWS benefited nicely from being overweight energy. However, consider something like Albemarle (ALB), which had an epic FCF boom as lithium prices. Ycharts ALB's epic growth during the Lithium bubble led COWZ to buy it most heavily right before fundamentals collapsed, and the price has been in free fall ever since. COWZ then sold as fundamentals deteriorated but at a loss. Tax loss-harvesting is why COWZ's historical tax cost ratio is just 0.76% vs. 0.6% S&P 500. VictoryShares VictoryShares has the best potential strategy, confirmed by its backtest and historical returns so far, though those are just nine months old. By looking at three different metrics to analyze the growth, earnings, sales, and EBITDA and considering both 12-month trailing FCF and future consensus estimates, you can eliminate much of the noise you can get with a single metric. However, VFLO's young age means it will take a few years to gather sufficient data to determine what kind of turnover and tax efficiency it has. Annual Turnover Rates.  Pacer COWZ. 90% but tax-efficient Amplify COWS. 21% VictoryShares VFLO. NA  Remember that these are quarterly rebalancing ETFs. That means that the portfolios will change completely every one to two years. That's why you own them - the strategy, not the stocks. I can't tell you what these ETFs will own in two years, but I can tell you they will own the best combinations of deep-value, high-quality blue chips. Total Return History Since Amplify's Inception September 2023 Ycharts Since VFLO Inception July 2023 VFLO is the only value ETF I know of to keep up with the Mag 7 since inception. Not just beating COWZ and value in general, as well as the S&P and Nasdaq, but even the Mag 7. Ycharts Since launching, VFLO has been the ultimate anti-FOMO ETF. A place value investors can turn to without ripping their hair out in frustration that big tech is yet again outperforming.  As long as big tech's strong growth continues, there's no reason to believe value will outperform growth. Not since growth's Cash-Adjusted PEG is close to 1, indicating growth isn't overvalued.  That's the secret to why growth has been so powerful for the last 15 years. If you want to keep up with the market, 30% big tech, the only way to do that with a value ETF is FCF yield ETFs, the single best value metric of the last 33 years. Annualized Returns Since October 2023 Portfolio Visualizer Amplify is off to a great start with higher volatility than the other ETFs or S&P. Portfolio Visualizer Only VFLO has thus far been generating alpha compared to the S&P and has superior volatility-adjusted metrics. Portfolio Visualizer There isn't enough data to be conclusive, but based on its strategy and current portfolio, COWS has been surprisingly volatile thus far. Keep that in mind if you want to start a tracking position in this ETF. Bottom Line. Free Cash Flow ETFs Are The Future Of Value Investing The more I learn about FCF ETFs and their methodology, the more I'm convinced they're far superior to traditional value ETFs. Pacer Once more, this is the most accurate value metric of the last 33 years. Most value ETFs, like VTV, use earnings and book value, and some use dividend yields. But if you want to target a specific alpha factor, such as growth, value, quality, dividend growth, etc., you should strive for the best way to measure that factor. Amplify's FCF yield ETF is a great new entry into this burgeoning field of value investing - a purely evidence-driven, rules-based approach to fundamental quantitative asset management. Suppose FCF yield ETFs continue to deliver their excellent historical returns (backtest and since 2017). In that case, they will become more popular, and we'll most likely see a lot more FCF yield ETFs that use different combinations of screening criteria to try to boost returns at the margins.  But for now, here are my rankings.  VFLO combines growth, quality, deep value, and historical returns best. Amplify COWS. Quality screens increase safety, provide the best valuation, and, for now, give the best growth consensus outlook (lowest PEG). Pacer COWZ. It's the most time tested, but there are no quality screens or growth screens, and its methodology is the weakest (though still superior to 99% of value ETFs based on historical returns).","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2428632705"}