GRNY Beat COWZ by 11 Points This Year. Oil Prices and Interest Rates Will Decide Who Wins Next
The Pacer US Cash Cows 100 ETF (NYSEARCA:COWZ) and the Fundstrat Granny Shots US Large Cap ETF (NYSEARCA:GRNY) sit on opposite ends of how quality gets defined in a large-cap portfolio. COWZ ranks the Russell 1000 by free cash flow…
The Pacer US Cash Cows 100 ETF (NYSEARCA:COWZ) and the Fundstrat Granny Shots US Large Cap ETF (NYSEARCA:GRNY) sit on opposite ends of how quality gets defined in a large-cap portfolio. COWZ ranks the Russell 1000 by free cash flow yield and takes the top 100 names, a rules-based screen with no human override. GRNY is Tom Lee’s actively managed expression of stocks that show up in multiple Fundstrat thematic baskets, a conviction screen built on analyst overlap. The strategies should produce sharply different portfolios. The trailing 12-month returns show why they have not.
What each fund is actually betting on
COWZ buys companies whose current cash generation looks cheap relative to enterprise value. That bet leans into mature, capital-returning businesses. The fund’s top sector weights are Health Care at 22.01%, Information Technology at 18.47%, and Energy at 16.06%, with ConocoPhillips at a 2.25% top position and Qualcomm at 1.99%. Pfizer, AT&T, Verizon, and Altria round out the cash-rich roster.
GRNY bets that stocks sitting at the intersection of several long-duration themes (AI, electrification, energy security, millennial spending) will compound faster than the index. That tilts the portfolio toward names like NVIDIA and GE Vernova, which would never clear a strict FCF-yield screen. NVIDIA trades at a trailing PE of 46; GE Vernova at a trailing PE of 31.
Where the difference shows up, and where it doesn’t
Over the past year, GRNY returned 29.35% versus COWZ at 17.84%, with the S&P 500 at 26.49%. ConocoPhillips is up 27.29% YTD, Qualcomm up 25.43% YTD, and GE Vernova up 62.8% YTD. Qualcomm shows up in both funds. The cash-flow screen and the conviction screen are arriving at some of the same names through different doors, which is why the divergence is narrower than the methodologies suggest.
The March 2026 volatility spike (VIX peaked at 31.05 on March 27) favored GRNY’s thematic conviction. The current VIX of 17.99 and elevated 10-year Treasury at 4.46% normally favor COWZ-style near-term cash.
The practical comparison
| Factor | COWZ | GRNY |
|---|---|---|
| Expense ratio | 0.49% | Not disclosed in fund snapshot |
| Inception | December 16, 2016 | November 2024 |
| Construction | Rules-based FCF yield rank | Active thematic overlap |
| Dividend yield | 1.7% | Negligible |
| 1-year return | 17.84% | 29.35% |
The verdict
COWZ fits an investor who wants a transparent, low-turnover way to own the cheapest cash generators in the Russell 1000 and is willing to underweight the AI complex to get it. GRNY fits an investor who trusts active thematic conviction and wants exposure to NVIDIA and GE Vernova that an FCF screen will never buy at current valuations. If oil holds above $100 and rates stay near 4.5%, COWZ catches up quickly. If AI capex and electrification orders keep compounding, GRNY keeps its lead.
Contact [email protected] for any questions or corrections.
Austin Smith is a financial publisher with over two decades of experience as an investor, analyst, and advisor. He covers stocks, ETFs, Artificial intelligence and personal finance for 24/7 Wall St. Previously, he spent over a decade at The Motley Fool as a senior editor for Fool.com, portfolio advisor for Millionacres, and launched The Ascent to help reader take control of their personal finances.
His work has been featured on Fool.com, NPR, CNBC, USA Today, Yahoo Finance, MSN, AOL, Marketwatch, and many other publications. He is as an advisor to private companies, and co-hosts The AI Investor Podcast with Eric Bleeker.
When not looking for investment opportunities, he can be found skiing, running, or playing soccer with his children. Learn more about Austin's investment approach here.
