GCOW Profile
The Pacer Global Cash Cows Dividend ETF is designed to offer investors exposure to a diversified range of global companies that are distinguished by their high dividend yields and substantial free cash flow. Under typical market conditions, the fund commits at least 80% of its total assets, excluding any collateral from securities lending activities, to securities that are part of its underlying index. This index includes companies whose characteristics align closely with those of the securities in the fund’s portfolio, such as depositary receipts that mirror the index’s economic profile.
The index employed by the fund utilizes a rigorous, rules-based methodology to select its components, focusing on firms that not only offer high dividend yields but also exhibit robust free cash flow yields. This approach aims to capture companies that are financially sound and capable of generating significant cash flow relative to their market value. By prioritizing these criteria, the fund seeks to invest in companies that are well-positioned to deliver consistent dividend income to investors.
The investment strategy of the Pacer Global Cash Cows Dividend ETF centers around identifying and gaining exposure to global cash-rich companies that distribute substantial dividends. These companies are selected based on their ability to generate high free cash flow, which is a critical indicator of financial health and operational efficiency. This strategy is designed to appeal to investors seeking both income and potential capital appreciation from stable, cash-generative firms.
As a result of its focus on high-dividend yield and high free cash flow, the fund’s portfolio is likely to be concentrated in sectors and companies that meet these stringent criteria. Investors should be aware that while the fund aims to provide stable income through dividends, its concentration in high cash flow companies may lead to sector-specific risks and exposures. Understanding the underlying investment strategy and the index’s selection criteria can help investors assess how well the fund aligns with their investment goals and risk tolerance.
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