For many investors focusing on dividends and value, the Schwab Dividend Equity (SCHD) is considered a top choice ETF. It has a solid history of paying and increasing dividends, with over $55 billion in investments.

However, a lesser-known ETF, the Pacer US Cash Cows 100 (COWZ), has consistently outperformed both SCHD and the SPDR S&P 500 (SPY) for years.

Data shows that this year, the COWZ ETF has returned 10.48%, surpassing SCHD's 3.42% and SPY's 8.2%. Over the past five years, COWZ delivered a 115% return compared to SCHD's 74% and SPY's 93%.

One notable aspect of COWZ's performance against SPY is its lesser exposure to the technology sector, with only 9% of the ETF allocated to tech companies like DropBox, DocuSign, eBay, and Zoom Video.

COWZ's success can be attributed to its focus on cash flow, tracking companies with a solid track record of growing free cash flow. Energy companies, benefitting from rising crude oil prices, make up a significant portion of the fund at 23%.

Despite the concentration in energy companies, COWZ is not vastly different from SCHD and SPY in terms of sector allocation. SCHD is well-balanced across industries, while SPY has a significant technology sector exposure.

With the potential for energy prices to continue rising and oil and gas companies to generate strong profits, COWZ is poised to maintain its strong performance in the coming years.