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The Cash Cows ETF Series

CALF

Pacer US Small Cap Cash Cows 100 ETF

A strategy driven exchange traded fund that aims to provide capital appreciation over time by screening the S&P SmallCap 600® for the top 100 companies based on free cash flow yield.

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.
  • Small-cap companies offer a variety of opportunities including exposure to companies with higher growth that are often under-researched.
  • Watch to learn more about how Pacer Cash Cows Index ETFs work.




Free Cash Flow Yield Comparison

as of 12/31/20231

1. High Quality Small-Cap Companies
Unique focus on quality small-cap companies with high free cash flow yield.
 

2. Trading at a Discount
Exposure to opportunities in the market where high quality 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 Small Cap 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 2023 quarterly rebalance.

Top 100 small-cap companies with the highest free cash flow yield.

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

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)All financial companies are excluded from the index universe. Real Estate is considered a separate sector from Financials. In addition, companies with negative free cash flow (FCF) are excluded based on FactSet analyst consensus estimates for average projected FCF and earnings over the next two years. A minimum of one estimate from an analyst captured by FactSet data is required for a consensus estimate. There is a risk that analyst estimates may be subjective. Estimates may be inaccurate, flawed, or biased. Investors should be aware that companies may be excluded as a result of these estimates.
(3)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
P/E ratio a fundamental measure commonly 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.

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Performance (%)

as of 12/31/2023

  Since Fund Inception (6/16/17) YTD 1 Year 3 Year 5 Year
Pacer US Small Cap Cash Cows 100 ETF NAV 12.20 35.54 35.54 17.33 17.37
Pacer US Small Cap Cash Cows 100 ETF Market Price 12.17 35.43 35.43 17.32 17.32
Pacer US Small Cap Cash Cows Index 12.56 35.66 35.66 17.92 17.81
S&P SmallCap 600 Value Index2 8.05 14.89 14.89 10.20 11.31
S&P SmallCap 600 8.54 16.05 16.05 7.28 11.03

Monthly Performance

Source: US Bank and S&P.
(2)The Value Index listed above is being included to provide a performance comparison of a value index, which the Adviser believes is a more suitable comparison based on the investment strategy of the Fund.
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 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.

The Pacer US Small Cap Cash Cows Index was released on 5/29/17.

 

Top 10 Holdings (%)

as of 6/30/17

View All Holdings

Daily Holdings

Ticker Holding Weight
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Sector Breakdown (%)

as of 6/30/2022

To view a sector's breakdown, please select a slice. To return to the total breakdown, select 'Sector Breakdown' below. Please note, the sector table below only shows total sector weights.

Sector Weight

Index Characteristics

as of 12/31/2023

  Pacer US Small Cap Cash Cows Index S&P SmallCap 600 Index
Weighted Average Market Cap ($mil) 2,759.63 2,895.18
Dividend Yield (%) 0.93 1.34
Free Cash Flow Yield (%) 11.78 3.62
Price/Earnings (P/E) Ratio 10.81 14.98

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 SmallCap 600® Index measures the performance of 600 small sized companies in the US equity market, with market capitalization ranging from $450 million to $2.1 billion USD. The index does not overlap holdings with the S&P 500 or S&P MidCap 400.

Pacer US Small Cap Cash Cows Index (the Index) is the property of Index Design Group, LLC which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index.  The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, S&P Dow Jones Indices).  S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. Calculated by S&P Dow Jones Indices and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Index Design Group, LLC.  S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (SPFS), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones).

Distributions

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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.

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