ECOW Profile
The Pacer Emerging Markets Cash Cows 100 ETF is designed to offer investors exposure to large and mid-capitalization companies in emerging markets that exhibit high free cash flow yields. The fund aims to capitalize on the growth potential of emerging markets while focusing on firms that demonstrate strong financial health through their ability to generate substantial free cash flow. This focus on cash flow is intended to provide investors with a measure of financial stability and the potential for attractive returns, even in the often volatile emerging markets landscape.
The ETF tracks an index that employs an objective, rules-based methodology to select its components. This approach ensures that the fund remains focused on its core investment strategy, with stock selection based on measurable financial criteria rather than subjective assessments. By concentrating on companies with high free cash flow yields, the index aims to identify businesses that are not only profitable but also capable of reinvesting in their operations, returning capital to shareholders, or reducing debtâ€all indicators of strong financial management.
In accordance with its investment strategy, the fund allocates at least 80% of its total assets to the component securities of the index or investments that closely replicate the economic characteristics of those securities. This commitment ensures that the fund remains true to its mandate of providing targeted exposure to financially robust companies in emerging markets. The ETF's focus on high free cash flow yield companies may lead to a portfolio that differs significantly from broad-based emerging market indices, potentially offering a distinct risk-return profile for investors.
As a non-diversified fund, the Pacer Emerging Markets Cash Cows 100 ETF may invest a larger proportion of its assets in a smaller number of securities or sectors compared to more diversified funds. While this concentration can increase the fund's risk profile, it also enhances its potential to deliver superior returns if its selected investments perform well. The ETF's strategy is particularly appealing to investors seeking to tap into the growth potential of emerging markets while maintaining a focus on companies with strong cash flow generation, which may provide a cushion against market volatility and economic uncertainty.
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