Pacer US Cash Cows Growth ETF (BUL) Covered Calls

The Pacer US Cash Cows Growth ETF (BUL) is a strategy-driven fund that provides exposure to U.S. large- and mid-cap companies identified as having high projected free cash flow growth. By screening the S&P 900 Pure Growth Index for companies with the highest free cash flow yields, BUL aims to capture capital appreciation from businesses with strong cash-generating capabilities and robust growth potential.

You can sell covered calls on Pacer US Cash Cows Growth ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for BUL (prices last updated Tue 4:16 PM ET):

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The Pacer US Cash Cows Growth ETF (BUL) is designed to offer a unique growth-focused strategy by prioritizing "cash cows"—companies that produce significant free cash flow relative to their enterprise value. Unlike traditional growth indices that focus heavily on sales or earnings growth, BUL overlays a fundamental free cash flow screen to ensure that the companies within the portfolio are not only growing but also generating the cash necessary to sustain that growth.

The fund starts with the S&P 900 Pure Growth Index as its universe, then filters for the top 50 companies based on their projected free cash flow yield over the next two years. The resulting portfolio is concentrated and periodically rebalanced, providing investors with a curated exposure to high-quality growth businesses that are effectively managed for cash efficiency.

Competitive Landscape

BUL operates within the crowded U.S. growth equity space. It faces competition from massive, low-cost index trackers that serve as the standard for growth exposure, such as the Vanguard Growth ETF (VUG) and the iShares Russell 1000 Growth ETF (IWF). These funds offer broader, market-cap-weighted exposure to growth equities and feature deep, liquid options markets.

While VUG and IWF are the primary benchmarks, BUL differentiates itself by using a factor-based, active-index approach to "quality growth." It is best viewed as a thematic, "smart beta" alternative for investors who want to emphasize cash-flow discipline over pure-market-cap growth strategies.

Strategic Outlook and Innovation

The strategic outlook for BUL is predicated on the idea that free cash flow is a superior indicator of long-term corporate health, especially in high-growth industries where capital allocation is critical. As interest rate environments fluctuate, companies that can self-fund growth through cash generation often outperform those reliant on external financing.

Innovation at the fund level is centered on its quantitative screening methodology. Pacer Advisors continues to leverage its "Cash Cows" framework to identify firms that balance aggressive expansion with financial prudence. By providing this strategy in an efficient, transparent ETF wrapper, BUL offers a specialized tool for investors looking to tilt their growth portfolios toward companies with proven, consistent cash-generating power.

Want more examples? BUG Covered Calls | BUR Covered Calls