HERD Profile
The Pacer Cash Cows Fund of Funds ETF is a strategic investment vehicle designed to offer exposure to high-quality, cash-generating companies through a distinctive index-based approach. The fund is managed by Pacer Advisors, Inc., and relies on a proprietary methodology developed and maintained by Index Design Group, an affiliate of Pacer Advisors. This methodology focuses on identifying companies that exhibit strong cash flow generation capabilities, which are considered essential for sustained business growth and stability.
Under normal market conditions, the Pacer Cash Cows Fund of Funds ETF allocates at least 80% of its total assets to component securities of its underlying index or to holdings within Cash Cows ETFs. These investments are made in proportions that mirror the weightings of the securities in the Cash Cows ETFs, adjusted to align with the ETF’s allocation within the broader index. This approach ensures that the fund maintains a targeted exposure to the most promising cash-generating companies across various sectors.
The fund’s investment strategy is centered on capturing the performance of high cash flow companies through a diversified portfolio of ETFs that adhere to the Cash Cows methodology. By focusing on firms with robust cash flow profiles, the fund aims to provide investors with a stable and potentially lucrative investment option. The Cash Cows ETFs included in the fund are selected based on their ability to deliver significant returns driven by their operational efficiency and financial health.
The Pacer Cash Cows Fund of Funds ETF is categorized as non-diversified, which means it does not spread its investments across a broad range of securities but instead concentrates its assets in a specific selection of high-performing ETFs. This concentrated approach allows the fund to leverage the strengths of its underlying Cash Cows ETFs, providing investors with targeted exposure to companies that excel in cash generation and operational effectiveness.
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