Three ETFs That Refuse to Rank Stocks by Size. Each Picks Winners a Different Way Ryne Mauck Fri, October 16, 2026 at 8:03 PM EDT 4 min read ^GSPC -1.09% COWZ +0.01% MOAT -0.54% RSP -0.42% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
RSP, COWZ, and MOAT each reject market-cap weighting, instead selecting stocks by equal weight, free cash flow yield, or durable competitive advantage.
COWZ screens the Russell 1000 for the top 100 stocks by free cash flow yield, excluding financials and companies with negative projected free cash flow.
COWZ's cash flow approach delivered a 73% five-year return, outpacing RSP's 50% and MOAT's 54% across every measured time window.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
In a standard S&P 500 index fund, you own most of whichever company is worth the most. That's market-cap weighting: each company's slice of the fund is set by its market value, meaning its share price times all of its shares. The biggest names get the biggest slices.
Three large-company ETFs drop that rule: the Invesco S&P 500 Equal Weight ETF (NYSEARCA:RSP), the Pacer US Cash Cows 100 ETF (CBOE:COWZ), and the VanEck Morningstar Wide Moat ETF (CBOE:MOAT).
As its name says, RSP applies equal weighting to the S&P 500. Every company in the index gets the same slice, whatever its size.
In practice, you own far less of the giants and far more of the smaller members than a standard fund would give you. RSP leaves the membership list to the S&P 500 index and changes only how the weights are assigned.
COWZ screens the Russell 1000 for the top 100 companies by free cash flow yield. Free cash flow is the cash a business has left after paying for its operations and equipment. Pacer defines the yield as free cash flow divided by enterprise value (a company's market value plus its debt, minus its cash).
Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor)
__________________________________________
The screen excludes financial companies and any company with negative projected free cash flow based on analyst consensus estimates. Pacer ETFs then weights the remaining companies by trailing twelve-month free cash flow, calculated as operating cash flow minus capital expenditures.
The result looks very different from the index it starts with.
An economic moat is a durable competitive advantage, such as a powerful brand or high switching costs, that keeps competitors from eating into a company's profits. According to VanEck, MOAT tries to track the Morningstar Wide Moat Focus Index. That index targets companies with sustainable competitive advantages that trade at attractive prices relative to Morningstar's estimate of fair value.
That price test means a great business trading at a high price can be left out. Unlike Pacer ETFs' formula, VanEck notes that Morningstar's research draws on over 100 analysts worldwide.
VanEck's daily holdings as of October 15, 2026 show 55 positions and $11.74B in total net assets. VanEck lists a net expense ratio of 0.46%. In VanEck's list, Meta Platforms leads at 2.95%, followed by Microsoft at 2.86% and Danaher at 2.84%.
Prices and price returns are as of 11:32 AM ET on October 16, 2026. COWZ has the highest return in all three periods. MOAT trails both rivals year-to-date and over one year, but it's ahead of RSP over five years. Each fund replaces cap weighting with its own distinct approach to stock selection.
Retirement planning doesn't have to feel overwhelming. The key is finding expert guidance, and SmartAsset's simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here's how:
1. Answer a Few Simple Questions.
2. Get Matched with Vetted Advisors
Why wait? Start building the retirement you've always dreamed of. Get started today! (sponsor)
Contact editorial@247wallst.com for any questions or corrections.
