ETF Watch: Pacer Files For ‘Cash Cow’ Family

Pacer Financial has filed for a new ETF family tracking indexes that select and weight their components based on cash flow. The “Cash Cows” ETFs in the filing include three funds.       

The Pacer US Cash Cows 100 ETF’s index will use the Russell 1000 Index as its selection universe. The index screens out non-REIT financial companies and companies with negative projected cash flows and earnings. From there, the 100 companies with the highest trailing 12-month cash flows are included in the index. Those companies are also weighted by their trailing 12-month cash flows, with individual weights capped at 2% of the index.

The Pacer Developed Markets International Cash Cows 100 ETF and the Pacer Emerging Markets Cash Cows 100 ETF use essentially the same methodology, but their selection universes are based on the FTSE All-World Developed ex US Index and the FTSE Emerging Markets Index, respectively.

Pacer currently has six ETFs that are actively trading, with nearly $670 million in total assets under management. Four of the funds are based on the firm’s “Trendpilot” strategy, which relies on market signals in the form of moving averages to switch an index’s allocation.

Contact Heather Bell at [email protected].