A company’s ability to generate free cash flow is a valuable metric for investors looking for financial sturdy firms with strong credit ratings and the potential to initiate and grow dividends. The Pacer US Cash Cows 100 ETF (BATS: COWZ) is an exchange traded fund that focuses on free cash flow generation.

COWZ tries to reflect the performance of the Pacer US Cash Cows 100 Index, which is comprised of large- and mid-cap U.S. companies with high free cash flow yields, or those commonly referred to as “cash cows.”

The underlying index selects companies from the Russell 1000 Index and screens those based on average projected free cash flows and earnings over each of the next two fiscal years, excluding financial companies other than real estate investment trusts.

Some data points indicate COWZ could be a rewarding strategy as the Federal Reserve moves forward with plans for additional interest rate increases.