US-headquartered ETF provider Pacer ETFs has announced strong year-over-year asset growth of the Pacer Cash Cows Index ETF Series, which has seen inflows of approximately USD5.9 billion in assets across the series between May 24, 2021 and May 23, 2022.
The firm writes that, most notably, the Pacer US Cash Cows 100 ETF (COWZ) has now reached USD5.5 billion in assets, becoming the firm’s largest fund based on assets under management (as of May 23, 2022).
The Cash Cows Series, launched in 2016, is now Pacer’s largest fund family by assets. It has surpassed the previous largest, Pacer’s Trendpilot Series, by approximately USD3 billion.
The firm writes that the fund series continues to deliver on its objective of investing in companies with high free-cash-flow yield, writing that what separates Pacer’s Cash Cows series from other value-oriented strategies is the firm’s approach to measuring free-cash-flow relative to a company’s enterprise value. Incorporating enterprise value looks at the true value of a company, including its debt, which is not captured by price/book the traditional metric for measuring value.
“We’re very proud of the success of our Cash Cows series, both on a performance and asset-growth basis, especially since the start of this year,” says Sean O’Hara, president of Pacer ETFs Distributors. “We’ve long believed that investing in companies that generate strong free cash flow can be an attractive approach for value-seeking investors, particularly in a volatile environment, and the growth in this series shows that investors and advisers see merit in this thematic approach.”