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‘Cash Cows’ Are Feasting in the Inflation-Tormented Stock Market

  • If growth is slowing, cash flow becomes more valuable: Hazen
  • $5.6 billion COWZ fund has seen inflows every week this year
Valero Energy refinery in Wilmington, California. 

Valero Energy refinery in Wilmington, California. 

Photographer: Bing Guan/Bloomberg

Investors seeking shelter from the stock selloff that’s dragged on all year have found a home in cash-rich companies.

Take the Pacer US Cash Cows 100 ETF (ticker COWZ), whose assets under management have risen to $5.6 billion from $1.3 billion at the start of 2022. The fund, which tracks mid- and large-cap companies with high free-cash-flow yields, has seen an inflow every week so far this year, data compiled by Bloomberg show. Through Monday, it was up 2.3% year to date, compared with the S&P 500’s nearly 17% loss.