Pacer ETFs has announced the launch of its newest fund and the latest addition to the Pacer Cash Cows Index ETF Series: the Pacer US Large Cap Cash Cows Growth Leaders ETF, now available on the Nasdaq.
The firm writes that COWG, which joins the firm’s largest family of ETFs by assets, will provide investors with a growth-oriented investment strategy that will complement the firm’s existing Cash Cows ETFs.
“In 2022, investors that favoured free cash flow yield, like in the Cash Cows series, may have fared well despite rising inflation and persistently volatile market conditions,” says Sean O’Hara, President of Pacer ETFs Distributors. “As we continue navigating these uncertain economic times, strong fundamental qualities such as high free cash flow will remain a valuable measure for investment potential. We created COWG to deliver a new opportunity for investors that may provide a more growth-oriented strategy focusing on free cash flow margin.”
COWG will track the Pacer US Large Cap Cash Cows Growth Leaders Index. Companies within the index universe are derived from the Russell 1000. Through a rules-based methodology, the fund aims to offer investors exposure to companies with high, growing free cash flow margin. Free cash flow margin is defined as a company’s free cash flow divided by sales, a potential strong signal for stable growth.
“The addition of COWG to the Cash Cows series serves as a testament to the expanding market demand for this type of investment strategy, which had an exceptional year of performance and asset gathering,” adds Joe Thomson, President of Pacer Financial. “Despite a challenging year in the markets, I am proud of our resiliency in delivering quality solutions for our trusted advisors and investors.”
The Pacer Cash Cows Index ETF Series recently achieved a new milestone in October, having surpassed more than USD10 billion in assets under management since its inception in 2016. The series saw rapid growth over 2022, despite continued market volatility seen globally, with over USD9 billion of those assets accumulated since May 2021.
The launch of COWG brings the total number of funds within the Pacer Cash Cows Index ETF Series to eight funds and Pacer’s total number of fund offerings to 45 with USD19.3 billion in assets under management as of 12/20/2022.