ICOW Profile
The Pacer Developed Markets International Cash Cows 100 ETF is designed to offer investors targeted exposure to large and mid-cap companies in developed markets outside the United States. Under normal market conditions, the fund invests at least 80% of its total assets, excluding collateral from securities lending, in securities that are components of its underlying index. This approach ensures that the fund aligns closely with the performance and characteristics of the index it tracks.
The underlying index employs a rules-based methodology to identify and provide exposure to non-U.S. companies that demonstrate high free cash flow yields. This index focuses on firms that generate substantial free cash flow relative to their market capitalization, reflecting strong financial health and efficient capital management. Companies selected for the index are primarily large and mid-capitalization entities in developed markets, excluding the U.S., that have a proven track record of generating significant cash flow.
The Pacer Developed Markets International Cash Cows 100 ETF's investment strategy centers around companies with high free cash flow yields, which are often indicative of their ability to return capital to shareholders through dividends or share repurchases. This focus on high cash flow generation aims to capture the potential benefits of investing in financially robust companies that are well-positioned to weather economic downturns and capitalize on growth opportunities.
By concentrating on developed market companies with high free cash flow yields, the ETF provides investors with a diversified exposure to stable, high-quality international firms. This investment approach is designed to appeal to those seeking income and stability in their international equity investments, leveraging the financial strength and operational efficiency of leading companies across developed economies. The fund’s strategy aligns with investors looking for growth opportunities in global markets while emphasizing financial resilience and cash flow generation.
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