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Pacer ETFs
Pacer Global ETFs

Cash Cows Speak

Every Language

Global investing is back in the spotlight. International stocks currently offer significant valuation discounts, higher dividend yields, and better diversification than the US.

Using free cash flow yield, the Pacer Cash Cows strategy screens for profitable, cash-generative companies trading at a discount. Our global Cash Cow, GCOW, also includes a dividend screen.

  • Pacer Global Cash Cows Dividend ETF (GCOW)
  • Pacer Developed Markets International Cash Cows 100 ETF (ICOW)
  • Pacer Emerging Markets Cash Cows 100 ETF (ECOW)
 
 
 
 

Pacer Global Cash Cows ETFs:

Pacer Global Cash Cows Dividend ETF

GCOW
GCOW Product Page
  • Inception2/22/16
  • BenchmarkMSCI World Value Index
  • Total Expenses0.60%
  • Cash Cows IndexPacer Global Cash Cows Dividend Index
  • CUSIP69374H709

Pacer Developed Markets International Cash Cows 100 ETF

ICOW
ICOW Product Page
  • Inception6/16/17
  • BenchmarkMSCI EAFE Value Index
  • Total Expenses0.65%
  • Cash Cows IndexPacer Developed Markets International Cash Cows 100 Index
  • CUSIP69374H873

Pacer Emerging Markets Cash Cows 100 ETF

ECOW
ECOW Product Page
  • Inception5/2/19
  • BenchmarkMSCI Emerging Markets Value Index
  • Total Expenses0.70%
  • Cash Cows IndexPacer Emerging Markets Cash Cows 100 Index
  • CUSIP69374H865
 

The Global Importance of Free Cash Flow 

On a global scale, Free Cash Flow is a vital metric because it represents the actual cash a company retains after paying all its operating expenses, interest, taxes, and long-term investments.

 

Pacer’s global ETFs utilize Free Cash Flow Yield to seek to identify high-quality companies that are often overlooked by the broader markets. FCFY is calculated by taking a company’s total free cash flow and dividing it by its enterprise value. By focusing on this, the strategy provides a deeper look into a company's financial health and valuation.

Free Cash Flow
Yield (FCFY)
=
Free Cash Flow
 
Enterprise Value(Market Cap + Debt − Cash)
 
Free cash flow yield can determine an investor's payback period: Higher free cash flow yield = shorter payback period
FCFY 1% 2% 5% 10%
Years to pay back all debt and equity holders 100
Years
50
Years
20
Years
10
Years
 
01

Financial Flexibility & Growth

Positive FCF signifies that a company does not need to rely heavily on external financing. Instead, it has the internal capacity to invest in growth opportunities, such as research and development, or participate in strategic mergers and acquisitions.

02

Determining the Payback Period

FCFY is a powerful valuation tool because it can help determine an investor's payback period. Generally, a higher free cash flow yield indicates a shorter payback period for all debt and equity holders.

03

A Source for Growing Wealth

Companies that generate high FCFY are better positioned to grow dividends over time and produce higher-quality earnings.

 

Compare the Funds

Pacer applies the FCFY methodology across different global markets to capture unique opportunities. By focusing on companies that generate more cash than they need to run their business, these strategies aim to provide attractive upside/downside capture and potentially higher returns while navigating the complexities of global and emerging markets.

 
GCOW
ICOW
ECOW
Market Exposure
Global (Includes U.S.)
International
Emerging
Investment Universe
Global large cap equities
Developed international large & mid-cap equities
Emerging market equities
Screening Methodology
Free Cash Flow Yield & Dividend Screen
Free Cash Flow Yield
Free Cash Flow Yield
Portfolio Role
Complement to global core allocation
Complement to international core allocation
Complement to emerging markets satellite allocation
GCOW
Market ExposureGlobal (Includes U.S.)
Investment UniverseGlobal large & mid-cap equities
ScreeningFree Cash Flow Yield + Dividend Screen
Portfolio RoleComplement to global core allocation
View GCOW Factsheet
ICOW
Market ExposureInternational
Investment UniverseDeveloped international large & mid-cap equities
ScreeningFree Cash Flow Yield
Portfolio RoleComplement to international core allocation
View ICOW Factsheet
ECOW
Market ExposureEmerging
Investment UniverseEmerging market equities
ScreeningFree Cash Flow Yield
Portfolio RoleComplement to emerging markets satellite allocation
View ECOW Factsheet

Introduction to Pacer Cash Cows ETF Series

Watch the video to learn more about the methodology and how the Cash Cows approach extends across global, emerging and international markets.

Having trouble viewing the video? Click Here

Watch Introduction to Pacer Cash Cows ETF Series
 

Interested in learning more about the Pacer Global Cash Cows ETFs?

View Our Resources
or
call 1-800-577-2000 to speak with a member of our team.