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 3/31/2020
1. High Quality US Equities
The strategy targets US companies with strong cash flows and healthy balance sheets.
2. Trading at a Discount
Exposure to opportunities in the market 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 March 2020 quarterly rebalance.
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Top 100 large-cap companies with the highest free cash flow yield.
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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.
Performance
as of 3/31/2020
| Since Fund Inception (12/16/16) | YTD | 1 Year | 3 Year | 5 Year | ||||
|---|---|---|---|---|---|---|---|---|
| Pacer US Cash Cows 100 ETF NAV | -1.47 | -27.76 | -20.93 | -3.01 | N/A | |||
| Pacer US Cash Cows 100 ETF Market Price | -1.60 | -27.98 | -21.37 | -3.19 | N/A | |||
| Pacer US Cash Cows 100 Index | -1.15 | -28.01 | -20.87 | -2.72 | N/A | |||
| Russell 1000 Value Index | -1.21 | -26.73 | -17.17 | -2.18 | 1.90 | |||
| Russell 1000 Index | 5.84 | -20.22 | -8.03 | 4.64 | 6.22 | |||
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Source: US Bank and FTSE. 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. |
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Top 10 Holdings (%)
as of 6/30/17
View All Holdings
| Ticker | Holding | Weight |
|---|
Sector Breakdown (%)
as of 3/31/2020
| Sector | Weight |
|---|---|
| Information Technology | 22.45 |
| Health Care | 20.29 |
| Industrials | 15.49 |
| Materials | 10.76 |
| Consumer Discretionary | 10.18 |
| Communication Services | 7.95 |
| Energy | 7.20 |
| Consumer Staples | 2.65 |
| Utilities | 2.46 |
| Real Estate | 0.57 |
Weighted average market cap is the sum of each company’s weight multiplied by its market cap.
Russell 1000 Value Index is a market-capitalization weighted index representing approximately 1000 large- and mid cap value stocks in the Russell 3000 Index.
Russell 1000 Index is a market-capitalization weighted index representing the top 1000 large-cap stocks in the Russell 3000 Index.
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.
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.
Index Characteristics
as of 3/31/2020
| Pacer US Cash Cows 100 Index | Russell 1000 Index | Russell 1000 Value Index | |
|---|---|---|---|
| Weighted Average Market Cap ($mil) | 26,348.01 | 259,169.02 | 105,545.43 |
| Dividend Yield (%) | 3.53 | 2.24 | 3.39 |
| Free Cash Flow Yield (%) | 11.11 | 4.14 | 4.20 |
| Price/Earnings (P/E) Ratio | 8.11 | 17.19 | 12.57 |
Distributions
| Ex Date | Total Distributions | Ordinary Income* | Short Term Capital Gains | Long Term Capital Gains | Return of Capital | |||
|---|---|---|---|---|---|---|---|---|
| 6/22/2020 | $0.10868132 | $0.10868132 | $0 | $0 | $0 | |||
| 3/23/2020 | $0.28308544 | $0.28308544 | $0 | $0 | $0 | |||
| 12/24/2019 | $0.20332575 | $0.20332575 | $0 | $0 | $0 | |||
| 9/24/2019 | $0.15512556 | $0.15512556 | $0 | $0 | $0 | |||
| 6/25/2019 | $0.13130910 | $0.13130910 | $0 | $0 | $0 | |||
| 3/26/2019 | $0.11926347 | $0.11926347 | $0 | $0 | $0 | |||
| 12/24/2018 | $0.14500092 | $0.14500092 | $0 | $0 | $0 | |||
| 9/25/2018 | $0.12129040 | $0.12129040 | $0 | $0 | $0 | |||
| 6/26/2018 | $0.07763696 | $0.07763696 | $0 | $0 | $0 | |||
| 3/27/2018 | $0.08470963 | $0.08470963 | $0 | $0 | $0 | |||
| 12/27/2017 | $0.12761 | $0.12761 | $0 | $0 | $0 | |||
| 9/26/2017 | $0.29124402 | $0.29124402 | $0 | $0 | $0 | |||
| 6/27/2017 | $0.093415 | $0.093415 | $0 | $0 | $0 | |||
| 3/28/2017 | $0.052409 | $0.052409 | $0 | $0 | $0 | |||
| 12/28/2016 | $0.03319000 | $0.03319000 | $0 | $0 | $0 | |||
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Past distributions are not indicative of future distributions. |
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Premium/Discount
As of Jul 10, 2020
| As of Date | Discount Premium |
|---|---|
| 01/02/2020 | 0.16 |
| 01/03/2020 | 0.24 |
| 01/06/2020 | 0.08 |
| 01/07/2020 | 0.08 |
| 01/08/2020 | 0.05 |
| 01/09/2020 | -0.15 |
| 01/10/2020 | -0.03 |
| 01/13/2020 | -0.19 |
| 01/14/2020 | 0.00 |
| 01/15/2020 | -0.07 |
| 01/16/2020 | -0.16 |
| 01/17/2020 | -0.05 |
| 01/21/2020 | 0.04 |
| 01/22/2020 | 0.14 |
| 01/23/2020 | 0.03 |
| 01/24/2020 | -0.2 |
| 01/27/2020 | 0.02 |
| 01/28/2020 | 0.14 |
| 01/29/2020 | -0.08 |
| 01/30/2020 | 0.01 |
| 01/31/2020 | 0.08 |
| Next | |
COWZ Premium/Discount Q3 2020
| As of Date | Discount Premium |
|---|---|
| 07/01/2020 | -0.01 |
| 07/02/2020 | -0.1 |
| 07/06/2020 | -0.07 |
| 07/07/2020 | -0.05 |
| 07/08/2020 | -0.05 |
| 07/09/2020 | -0.02 |
| 07/10/2020 | 0.06 |
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Free Cash Flow as a Proven Measurement of Quality
as of 12/31/19
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW
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Is The Lowest Cost The Best Solution?
as of 3/31/20
Category: Cash Cows Series, COWZ
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Institutional Presentation: Pacer Cash Cows Index ETF Strategies
as of 3/31/20
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL
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Pacer ETFs Performance
as of 5/31/20
Category: Trendpilot Series, PTLC, PTMC, PTNQ, PTEU, PTIN, TRND, PTBD, Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL, HERD, Leaders Series, PEXL, Pacer Custom Series, PWS, VETS, SRVR, INDS, RTL, SZNE, USAI
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The Power of Free Cash Flow Yield
December 2019
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW
Valuation metrics offer investors a simple way to assess a company’s worth by looking at its sales, earnings and cash flow.
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Value Stocks - Not the Bargain They Used to Be.
May 2018
Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW
Following age old investing advice to buy low, value stocks are appealing to most investors because of their potentially attractive prices below fair value.
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Break from the herd. Consider free cash flow.
January 2017
Category: Cash Cows Series, GCOW, COWZ
The Department of Labor’s new fiduciary regulations require many financial advisors to change the way they do business.
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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 2020 Q1 Quarterly Rebalance
Category: Cash Cows Series, COWZ
Institutional Presentation Videos
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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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Pacer Cash Cows Index Series 2019 Q1 Quarterly Rebalance
Category: Cash Cows Series, COWZ, CALF
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