The Autoselect ETF Series

GCOW

Pacer Global Cash Cows Dividend ETF

A strategy driven exchange traded fund that attempts to provide a continuous stream of income and capital appreciation over time by screening for companies with a high free cash flow yield and a high dividend yield.

  • Free cash flow is the cash remaining after a company has paid expenses, interest, taxes, and long-term investments. It is the source from which dividends are paid.
  • The ability to generate a high free cash flow yield indicates that a company has the capacity to pay dividends. Paying a dividend signals management is confident in the long-term viability of the business.
  • Dividends are a source of income to investors.


Impact of Current Dividend Yield (as of 12/30/16)1

1. Income
High dividend paying companies can provide a continuous stream of income for investors.
 

2. Reduced Volatility
Companies with a high free cash flow yield and a high dividend yield have historically declined less in market downturns.


3. Capital Appreciation
Investing in high free cash flow producing companies can provide growth opportunities necessary to produce capital appreciation for investors in addition to the income received.


 



 


(1)Dividend yield is the annual percentage of return earned by an investor on a common or preferred stock. The yield is calculated by dividing the amount of the 12 month dividends per share by the current market price per share of the stock. There is no guarantee dividends wil be paid.
Source(s): FactSet


Pacer Global Cash Cows Dividend Strategy Overview

An objective rules-based methodology that uses quality and value screens to select the top companies in the index universe.

1. FTSE Developed Large-Cap Index
Approximately 1,000 companies in developed markets worldwide. Financial companies, other than real estate investment trusts (REITs) are excluded from the Index universe.

2. Free Cash Flow Yield Screen
From the initial universe, 300 companies with the highest trailing twelve month free cash flow yield are selected

3. Dividend Yield Screen
From the companies with the highest free cash flow yield, 100 companies with the highest trailing twelve month dividend yield are selected


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.


Current Holdings

Daily Holdings

Performance

as of 12/30/16

  Since Fund Inception (2/22/16) YTD 1-Year 3-Year 5-Year
Pacer Global Cash Cows Dividend ETF Market Price 9.50 - - - -
Pacer Global Cash Cows Dividend ETF NAV 9.42 - - - -
Pacer Global Cash Cows Dividend Total Return Index 10.43 - - - -
Pacer Global Cash Cows Dividend Price Return Index 6.77 - - - -
FTSE Developed Large-Cap Index 14.98 8.04 8.04 4.20 10.78

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 $0.22806600 $0.22806600 $0 $0 $0
9/13/2016 $0.11591613 $0.11591613 $0 $0 $0
6/14/2016 $0.17877886 $0.17877886 $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 Global Cash Cows Dividend Index FTSE Developed Large-Cap Index
Weighted Average Market Cap ($mil) 75,196.8 126,877.3
Free Cash Flow Yield (%) 6.16 3.98
Dividend Yield (%) 4.11 2.31
Price/Earnings 17.15 19.15

Top 10 Holdings (%)

as of 12/30/16

Pacer Global Cash Cows Dividend ETF FTSE Developed Large-Cap Index
Ticker Holding Weight Ticker Holding Weight
TEF Telefonica SA 2.20 AAPL Apple, Inc. 2.19
BAYN Bayer AG 2.15 MSFT Microsoft Corporation 1.66
T AT&T, Inc. 2.14 XOM Exxon Mobil Corporation 1.33
NOVN Novartis AG 2.08 JNJ Johnson & Johnson 1.12
NESN Nestle SA 2.08 JPM JPMorgan Chase & Co. 1.10
INTC Intel Corporation 2.06 AMZN Amazon.com, Inc. 1.02
NOVOB Novo Nordisk A/S Class B 2.06 GE General Electric Company 0.99
ABBV AbbVie, Inc. 2.05 WFC Wells Fargo & Company 0.98
ROG Roche Holding Ltd. Genusssch. 2.04 T AT&T, Inc. 0.93
UNA Unilever NV Cert. of shs 2.03 FB Facebook, Inc. Class A 0.91
Total 20.89 Total 12.23

Sector Breakdown (%)

as of 12/30/16

  Weight
Telecommunication Services 17.40
Health Care 17.30
Consumer Staples 14.44
Consumer Discretionary 12.83
Information Technology 11.80
Industrials 8.91
Real Estate 5.72
Utilities 4.44
Materials 4.28
Energy 2.88

Top 10 Country Breakdown  (%)

as of 12/30/16

Pacer Global Cash Cows Dividend ETF FTSE Developed Large-Cap Index
Country Weight Country Weight
United States 36.11 United States 58.99
United Kingdom 10.45 Japan 8.77
Switzerland 9.64 United Kingdom 6.64
France 6.00 Germany 3.53
Japan 4.82 France 3.47
Australia 4.49 Switzerland 3.43
Netherlands 4.26 Australia 3.08
Spain 4.13 Canada 2.74
South Korea 3.28 South Korea 1.80
Sweden 2.75 Hong Kong 1.47
Total 85.93 Total 93.92

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.
FTSE Developed Large-Cap Index is a market-capitalization weighted index representing the performance of large-cap stocks in developed markets.

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 Global Cash Cows Dividend ETF Factsheet

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