Pacer ETFs has launched two new exchange traded funds (ETFs) in the firm’s Cash Cows Index ETF Series.
The Pacer US Small Cap Cash Cows 100 ETF (CALF) aims to capture the highest quality small-cap companies in the US by screening the S&P SmallCap 600 Index for the top 100 companies with the highest free cash flow yield.
The Pacer Developed Markets International Cash Cows 100 ETF (ICOW): selects the top 100 companies with the highest free cash flow yield in the FTSE Developed ex-US Index.
Both ETFs will trade on the Bats Global Markets (BATS) ETF Marketplace.
“At Pacer ETFs, we believe free cash flow yield is the best metric to measure quality,” says Sean O’Hara, President of Pacer ETF Distributors. “Our research shows companies with high free cash flow yield tend to outperform the broader market over time because they are more likely to have healthy balance sheets and growth potential. Having the cash flow story resonate well with Pacer Global Cash Cows Dividend ETF (GCOW) and Pacer US Cash Cows 100 ETF (COWZ), we are adding the ETFs to create more options for advisors looking for quality investment strategies.”
With the launch of the Pacer US Small Cap Cash Cow ETF and the Pacer Developed Markets International Cash Cows 100 ETF, Pacer ETFs now offers four ETFs in the Cash Cows IndexSM Series, adding to the four Trendpilot ETFs in the Trendpilot Series. The firm has been steadily increasing in growth since inception, amassing over USD1 billion in assets under management in just two years, as demand for passive, rules-based funds continues to grow.
Joe Thomson, President of Pacer Financial, says: “We set out to offer investors and their clients funds that can add value and differentiate their portfolios. With our two new funds, we can help investors gain exposure to high quality companies both in US small-cap and internationally. In today’s market, we believe there is real value in our Cash Cows Index strategy.”
