Cash Cows Index 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.
- Watch to learn more about how Pacer Cash Cows Index ETFs work.
Free Cash Flow Yield Comparison
as of 12/31/2020
1. High-Quality U.S. Large & Mid Cap Companies
Focus on quality large cap and mid cap companies with high free cash flow yield.
2. Growth Companies Trading at a Discount
Offers exposure to opportunities in the market where growth stocks are trading at a discount.
3. Long-Term Capital Appreciation
Using free cash flow yield to measure the sustainability of a company may produce potentially higher returns and more attractive upside/downside capture over time.
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.
Upside/Downside capture: Upside/downside capture ratio show you whether a given fund has outperformed--gained more or lost less than--a broad market benchmark during periods of market strength and weakness
Pacer US Cash Cows Growth 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 2020 quarterly rebalance.
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Top 50 large- and mid-cap companies with the highest free cash flow yield.
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(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)The S&P 900 Pure Growth Index is made up of approximately 150 companies that exhibit strong growth characteristics from the S&P 500 and S&P MidCap 400. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Financial companies, other than real estate investment trusts (“REITs”), are excluded from the Index universe.
(3)At the time of each rebalance of the Index, the companies included in the Index are weighted in proportion to their current market capitalization.
Performance
as of 12/31/2020
| Since Fund Inception (5/2/19) | YTD | 1 Month | 3 Month | 1 Year | ||||
|---|---|---|---|---|---|---|---|---|
| Pacer US Cash Cows Growth ETF NAV | 19.28 | 27.27 | 4.07 | 18.02 | 27.27 | |||
| Pacer US Cash Cows Growth ETF Market Price | 19.31 | 27.22 | 4.22 | 17.98 | 27.22 | |||
| Pacer US Cash Cows Growth Index | 19.41 | 27.58 | 4.14 | 18.19 | 27.58 | |||
| S&P 900 Pure Growth Index | 21.79 | 31.26 | 5.42 | 17.87 | 31.26 | |||
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Source: US Bank and S&P. |
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Top 10 Holdings (%)
as of 6/30/17
View All Holdings
| Ticker | Holding | Weight |
|---|
Sector Breakdown (%)
as of 12/31/2020
| Sector | Weight (%) |
|---|---|
| Information Technology | 39.23 |
| Consumer Discretionary | 21.71 |
| Health Care | 20.13 |
| Industrials | 7.92 |
| Materials | 4.32 |
| Communication Services | 3.97 |
| Financials | 2.10 |
| Energy | 0.61 |
Index Characteristics
as of 12/31/2020
| Pacer US Cash Cows Growth Index | S&P 900 Pure Growth Index | S&P 900 Index | |
|---|---|---|---|
| Weighted Average Market Cap ($mil) | 222,469.66 | 100,481.44 | 459,963.29 |
| Dividend Yield (%) | 0.63 | 0.36 | 1.53 |
| Free Cash Flow Yield (%) | 4.67 | 2.54 | 3.04 |
| Price/Earnings (P/E) Ratio | 25.74 | 37.94 | 28.92 |
Free cash flow yield measures a company’s total free cash flow relative to its enterprise value. This is an internal statistic and does not constitute investor yield. It is an internal statistic and does not constitute investor yield.
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. There is no guarantee dividends will be paid.
Weighted average market cap is the sum of each company’s weight multiplied by its market cap.
Price to earning ratio (P/E ratio) is a fundamental measure used to determine if an investment is valued appropriately. Each holding’s P/E is the latest closing price divided by the latest fiscal year’s earnings per share. Negative P/E ratios are excluded from this calculation.
Treasury yield is the interest rate on a given bond issued by the United States government.
S&P 900 Pure Growth Index is made up of approximately 150 companies that exhibit strong growth characteristics from the S&P 500 and S&P MidCap 400.
The Pacer US Cash Cows Growth Index was released on 2/19/19.
Distributions
| Ex Date | Total Distributions | Ordinary Income* | Short Term Capital Gains | Long Term Capital Gains | Return of Capital | |||
|---|---|---|---|---|---|---|---|---|
| 12/21/2020 | $0.02279000 | $0.02279000 | $0 | $0 | $0 | |||
| 9/21/2020 | $0.07523640 | $0.07523640 | $0 | $0 | $0 | |||
| 6/22/2020 | $0.06773880 | $0.06773880 | $0 | $0 | $0 | |||
| 3/23/2020 | $0.06105720 | $0.06105720 | $0 | $0 | $0 | |||
| 12/24/2019 | $0.07812000 | $0.07812000 | $0 | $0 | $0 | |||
| 9/24/2019 | $0.06754920 | $0.06754920 | $0 | $0 | $0 | |||
| 6/25/2019 | $0.06539020 | $0.06539020 | $0 | $0 | $0 | |||
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Past distributions are not indicative of future distributions. |
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Premium/Discount
As of Jan 26, 2021
| From Jan 4, 2021 to Jan 26, 2021 | |
|---|---|
| Days traded at premium | 9 |
| Days traded at discount | 7 |
| As of Date | Discount Premium |
|---|---|
| 01/04/2021 | -0.04 |
| 01/05/2021 | -0.03 |
| 01/06/2021 | -0.06 |
| 01/07/2021 | 0.03 |
| 01/08/2021 | -0.03 |
| 01/11/2021 | -0.09 |
| 01/12/2021 | 0.04 |
| 01/13/2021 | 0.03 |
| 01/14/2021 | -0.01 |
| 01/15/2021 | 0.01 |
| 01/19/2021 | 0.02 |
| 01/20/2021 | 0.03 |
| 01/21/2021 | 0.1 |
| 01/22/2021 | 0.07 |
| 01/25/2021 | -0.07 |
| 01/26/2021 | 0.01 |
BUL Premium/Discount Q1 2021
| From Jan 4, 2021 to Jan 26, 2021 | |
|---|---|
| Days traded at premium | 9 |
| Days traded at discount | 7 |
| As of Date | Discount Premium |
|---|---|
| 01/04/2021 | -0.04 |
| 01/05/2021 | -0.03 |
| 01/06/2021 | -0.06 |
| 01/07/2021 | 0.03 |
| 01/08/2021 | -0.03 |
| 01/11/2021 | -0.09 |
| 01/12/2021 | 0.04 |
| 01/13/2021 | 0.03 |
| 01/14/2021 | -0.01 |
| 01/15/2021 | 0.01 |
| 01/19/2021 | 0.02 |
| 01/20/2021 | 0.03 |
| 01/21/2021 | 0.1 |
| 01/22/2021 | 0.07 |
| 01/25/2021 | -0.07 |
| 01/26/2021 | 0.01 |
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Free Cash Flow as a Proven Measurement of Quality
as of 12/31/20
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL, HERD
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Institutional Presentation: Pacer Cash Cows Index ETF Strategies
as of 12/31/20
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL
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Pacer Cash Cows ETF Series
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL, HERD
Educational Videos
Duration: 2:51
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Cash Cows in 1 Minute
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL, HERD
Educational Videos
Duration: 1:00
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Pacer Cash Cows Index Series 2019 Q4 Quarterly Rebalance
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL
Institutional Presentation Videos
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Pacer Cash Cows Index Series 2019 Q3 Quarterly Rebalance
Category: Cash Cows Series, COWZ, CALF, BUL
Institutional Presentation Videos
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Pacer Cash Cows Index Series 2019 Q2 Quarterly Rebalance
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL
Institutional Presentation Videos
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Cash Cows Update April 2, 2020 Webinar
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL
Institutional Presentation Videos
Duration: 45:15
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Cash Cows Update April 16, 2020 Webinar
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL
Institutional Presentation Videos
Duration: 42:53
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Cash Cows Update June 9, 2020 Webinar
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL
Institutional Presentation Videos
Duration: 43:01