[email protected] | 877-337-0500 | PacerETFS Twitter PacerETFS LinkedIn     Logout

The Cash Cows 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.

Cash Cows Index Strategy

  • 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.
  • Watch to learn more about how Pacer Cash Cows Index ETFs work.




Impact of Current Dividend Yield

as of 9/30/20181

1. Capital Appreciation
Using free cash flow yield to measure the sustainability of a company may produce a higher return with lower volatility over time.
 

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


3. Yield
Companies with a high free cash flow yield are better positioned to grow and maintain their dividends, but there is no guarantee dividends will be paid.


 



 


(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 will be paid.
Source(s): FactSet


Pacer Global Cash Cows Strategy Overview

An objective rules-based methodology that uses a quality and value screens to select top companies in the index universe.
All data as of June 2018 semi-annual rebalance.

Top 100 companies with the highest free cash flow yield and highest dividend yield.

  • Weighted by dividends (highest trailing twelve month)
  • Holdings capped at 2% for each company at time of rebalance
  • Reconstituted and rebalanced semi-annually in June and December

Pacer Global Cash Cows Dividend Index Characteristics

as of 9/30/2018

Weighted Average Market Cap ($mil) 82,575.87
Dividend Yield (%) 4.46
Free Cash Flow Yield (%) 5.46
Price to Earnings (P/E) Ratio 14.88

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 for average projected FCF and earnings over the next two years.
(4)Remaining 100 companies are weighted by their trailing twelve month dividends. Dividend weighting is calculated by adding the 100 companies’ dividends and dividing the total by each company’s trailing 12 month dividends.
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)
(3)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.

Current Holdings

Daily Holdings

Performance

as of 9/30/2018

  Since Fund Inception (2/22/16) YTD 1 Year 3 Year 5 Year
Pacer Global Cash Cows Dividend ETF NAV 11.90 1.56 6.29 N/A N/A
Pacer Global Cash Cows Dividend ETF Market Price 11.83 1.24 5.86 N/A N/A
Pacer Global Cash Cows Dividend Total Return Index 12.96 2.01 7.32 N/A N/A
Pacer Global Cash Cows Dividend Price Return Index 8.62 -1.24 3.06 N/A N/A
FTSE Developed Large-Cap Index 17.09 5.89 12.03 14.45 9.91

Monthly Performance

Source: FTSE and US Bank.

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.

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
9/25/2018 $0.37688173 $0.37688173 $0 $0 $0
6/26/2018 $0.24443164 $0.24443164 $0 $0 $0
3/27/2018 $0.22295838 $0.22295838 $0 $0 $0
12/27/2017 $0.22477 $0.22477 $0 $0 $0
9/26/2017 $0.26317596 $0.26317596 $0 $0 $0
6/27/2017 $0.21802782 $0.21802782 $0 $0 $0
3/28/2017 $0.17259276 $0.17259276 $0 $0 $0
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

2018 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.

Index Characteristics

as of 9/30/2018

  Pacer Global Cash Cows Dividend Index FTSE Developed Large-Cap Index
Weighted Average Market Cap ($mil) 82,575.87 199,244.50
Free Cash Flow Yield (%) 5.46 3.65
Dividend Yield (%) 4.46 2.32
Price/Earnings 14.88 17.49

Top 10 Holdings (%)

as of 6/30/17

Ticker Holding Weight

View All Holdings

Daily Holdings

Sector Breakdown (%)

as of 9/30/2018

  Weight
Health Care 20.11
Consumer Staples 14.62
Telecommunication Services 14.45
Consumer Discretionary 11.46
Materials 10.22
Industrials 6.03
Energy 5.70
Information Technology 5.53
Real Estate 5.40
Utilities 4.45
Communication Services 2.03

Top 10 Country Breakdown  (%)

as of 9/30/2018

Country Weight
United States 37.68
Japan 10.88
United Kingdom 10.28
Australia 8.61
Hong Kong 6.19
Switzerland 5.25
France 4.59
Norway 3.36
Spain 3.03
Germany 2.03

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. There is no guarantee dividends will be paid.
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

    Pacer Global Cash Cows Dividend ETF Factsheet

    as of 9/30/18

    Category: Cash Cows Series, GCOW

    Download

  • Free Cash Flow as a Proven Measurement of Quality

    Free Cash Flow as a Proven Measurement of Quality

    as of 12/31/17

    Category: Cash Cows Series, GCOW, COWZ, CALF, ICOW

    Download

  • Pacer ETFs Performance

    Pacer ETFs Performance

    as of 10/31/18

    Category: PTLC, PTMC, PTNQ, PTEU, GCOW, COWZ, CALF, ICOW, PWS, VETS, SRVR, INDS, RTL, SZNE, PEXL

    Download

  • Value Stocks - Not the Bargain They Used to Be.

    Value Stocks - Not the Bargain They Used to Be.

    May 2018

    Category: 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.
    Download

  • Jump on the European Bandwagon

    Jump on the European Bandwagon

    May 2017

    Category: PTEU, GCOW
    The European stock market began to see improvement in 2016 as bank lending increased and earnings grew.
    Download

  • Break from the herd. Consider free cash flow.

    Break from the herd. Consider free cash flow.

    January 2017

    Category: GCOW, COWZ
    The Department of Labor’s new fiduciary regulations require many financial advisors to change the way they do business.
    Download

  • Overcoming Home Country Bias and Seizing the Intl. Opportunity.

    Overcoming Home Country Bias and Seizing the Intl. Opportunity.

    October 2016

    Category: GCOW
    Based on our conversations with financial advisors, most admit they don’t have enough international exposure.
    Download

  • Don't Miss Opportunities Abroad. Globalize Your Portfolio.

    Don't Miss Opportunities Abroad. Globalize Your Portfolio.

    September 2016

    Category: PTEU, GCOW
    A common piece of investment advice is to “invest in what you know.” This may be sound advice, but it limits investors to a small part of the market.
    Download

  • Finding Quality Investments in an Overcrowded Market

    Finding Quality Investments in an Overcrowded Market

    August 2016

    Category: GCOW
    Given the recent market volatility, investors are searching for stability in their portfolios. Weak economic growth, a hawkish Fed and declining earnings are creating more urgency for this stability.
    Download

  • The Power of Free Cash Flow Yield

    The Power of Free Cash Flow Yield

    December 2017

    Category: 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.
    Download

  • Global Opportunity for Dividends

    Global Opportunity for Dividends

    April 2016

    Category: GCOW
    In the current low interest rate environment, bonds and other fixed income products are not providing the same level of income they once did. As a result, investors are turning towards other opportunities like dividend stocks for income.
    Download