The Autoselect ETF Series

COWZ

Pacer US Cash Cows 100 ETF

A strategy driven exchange traded fund that aims to provide capital appreciation over time by screening the Russell 1000 for the top 100 companies based on free cash flow yield.

View the Pacer US Cash Cows 100 Strategy
 

  • Free cash flow is the cash remaining after a company has paid expenses, interest, taxes, and long-term investments. It can be used to buy back stock, pay dividends, or participate in mergers and acquisitions.
  • The ability to generate a high free cash flow yield indicates a company is producing more cash than it needs to run the business and can invest in growth opportunities.


Free Cash Flow Yield Comparison (as of 12/30/16)

1. High Quality US Equities
The strategy targets US companies with strong cash flows and healthly balance sheets.
 

2. Trading at a Discount
Exposure to opportunities in the marketplace where high quality stocks are trading at a discount.


3. Long-Term Growth and Income
Companies with a high free cash flow yield have the ability to grow dividends over time, but there is no guarantee dividends will be paid.





 


 


Definitions
Free Cash Flow (FCF): A company’s cash flow from operations minus capital expenditures (expenses, interest, taxes, and long-term investments)
Enterprise Value (EV): A company’s market capitalization adjusted to eliminate any capital structure bias (i.e. by adding debt and subtracting cash or cash equivalents)
Free Cash Flow Yield: FCF/EV. Measures a company’s total free cash flow relative to its enterprise value. This is an internal statistic and does not constitute investor yield.


Pacer US Cash Cows Strategy Overview

An objective rules-based methodology that uses a quality screen to select top companies in the index universe.
All data as of December 2016 quarterly rebalance.

Top 100 companies with the highest free cash flow yield.

  • Weighted by free cash flow yield (highest trailing twelve month)
  • Holdings capped at 2% for each company
  • Reconstituted and rebalanced quarterly

Pacer US Cash Cows 100 Index Characteristics

as of 12/30/16

Weighted Average Market Cap ($mil) 48,577.0
Dividend Yield (%) 2.29
Free Cash Flow Yield (%) 9.24
Price to Earnings (P/E) Ratio 15.21

Source: FactSet
(1)The individual components of the index are weighted by their total market capitalization. Market capitalization is determined by multiplying each company’s market price by their total outstanding shares. Companies are ranked in descending order based on their market cap in dollars.
(2)Financial companies, other than real estate investment trusts (REITs), are excluded from the index universe. In addition, companies with negative free cash flow are excluded based on FactSet analyst consensus estimates using average projected FCF and earnings over the next two years.
(3)The 3-year dividend growth is a weighted average of each company’s 3-year dividends per share growth rate. The growth rate is determined by measuring the change between each company’s most recent trailing 12 month dividends per share versus their trailing 12 month dividend per share 3 years ago.
(4)Remaining 100 companies are weighted by their trailing twelve month free cash flow. Free cash flow weighting is calculated as a company’s operating cash flow minus capital expenditures. Companies are ranked in descending order based on their free cash flow in dollars.

Current Holdings

Daily Holdings

Performance

as of 12/30/16

  Since Fund Inception (12/16/16) YTD 1-Year 3-Year 5-Year
Pacer US Cash Cows 100 ETF Market Price -1.31 - - - -
Pacer US Cash Cows 100 ETF NAV -1.29 - - - -
Pacer US Cash Cows 100 Index -1.27 - - - -
Russell 1000 Index -0.77 12.05 12.05 8.59 14.69

Source: FTSE, FactSet.

This is a new Fund and therefore has limited performance to report. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate, so shares may be worth more or less when redeemed or sold. Current performance may be lower or higher than the performance quoted. Visit http://www.paceretfs.com for the most recent month-end performance. Index returns are for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. You cannot invest directly in an index.

Total return is the actual rate of return of an investment over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time.

Distributions

Ex Date Total Distributions Ordinary Income* Short Term Capital Gains Long Term Capital Gains Return of Capital
12/28/2016 $0.03319000 $0.03319000 $0 $0 $0

2017 Distribution Schedule

Past distributions are not indicative of future distributions.
*Ordinary income is composed mainly of wages, salaries, commissions and interest income from bonds, and it is taxable using ordinary income rates.

Current Holdings

Daily Holdings

Index Characteristics

as of 12/30/16

  Pacer US Cash Cows 100 Index Russell 1000 Index
Weighted Average Market Cap ($mil) 48,577.0 -
Dividend Yield (%) 2.29 -
Free Cash Flow Yield (%) 9.24 -
Price/Earnings (P/E) Ratio 15.21 -

Top 10 Holdings (%)

as of 12/30/16

Pacer US Cash Cows 100 ETF
Ticker Holding Weight Free Cash Flow Yield (%)
VLO Valero Energy Corporation 2.21 8.54
TSN Tyson Foods, Inc. Class A 2.13 7.33
AAPL Apple, Inc. 2.09 8.20
VTR Ventas, Inc. 2.09 12.20
UAL United Continental Holdings, Inc. 2.09 9.73
EBAY eBay, Inc. 2.07 7.69
IBM International Business Machines Corporation 2.06 7.60
CSCO Cisco Systems, Inc. 2.05 10.71
BA Boeing Company 2.03 8.41
DAL Delta Air Lines, Inc. 2.02 10.00
Total 20.84

Sector Breakdown (%)

as of 12/30/16

  Weight
Information Technology 27.86
Real Estate 18.34
Consumer Discretionary 13.57
Health Care 13.45
Industrials 13.39
Consumer Staples 6.74
Energy 4.63
Materials 2.02

Weighted average market cap is the sum of each company's weight multiplied by its market cap.
Dividend yield is calculated using the gross dividend of a security (i.e., before any applicable withholding tax). Special cash dividends, unless they are paid for three consecutive years, and capital repayments are excluded from the dividend yield calculation.

Source: FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and / or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE’s express written consent. FTSE does not promote, sponsor or endorse the content of this communication.

 

  • Pacer US Cash Cows 100 ETF Factsheet

    Pacer US Cash Cows 100 ETF Factsheet

    as of 12/30/16

    Category: Autoselect Series, COWZ

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