Pacer ETFs, the exchange-traded funds issuer behind the cash cows series of ETFs, added to that lineup Monday with the debuts of new funds.
The new ETFs are the Pacer US Small Cap Cash Cows 100 ETF (BATS: CALF) and the Pacer Developed Markets International Cash Cows 100 ETF (BATS: ICOW).
CALF “aims to capture the highest quality small-cap companies in the US by screening the S&P SmallCap 600 Index for the top 100 companies with the highest free cash flow yield,” according to a statement from Pacer, while ICOW “selects the top 100 companies with the highest free cash flow yield in the FTSE Developed ex-US Index.”
More About CALF
The weighted average market value of CALF's holdings is $1.16 billion. The new ETF's index has a dividend yield of 1.65 percent and a free cash flow yield of 9.68 percent, according to issuer data.
The new ETF is heavy on consumer discretionary and technology names as those sectors combine for over 59 percent of the fund's weight. Industrial and healthcare stocks combine for almost a quarter of CALF's weight. CALF charges 0.59 percent per year, or $59 on a $10,000 investment.
More On ICOW
The Pacer Developed Markets International Cash Cows 100 ETF is large-cap ETF as highlighted by a weighted average market value of $30 billion for the ETF's holdings. ICOW's underlying index has a dividend yield of 2.75 percent and a free cash flow yield of 7.21 percent, according to issuer data.
The new allocates over 46 percent of its combined weight to consumer discretionary and materials names. Industrial and utilities stocks combine for over a quarter of the ETF's weight. ICOW is top heavy at the geographic level as Japan, South Korea and the U.K. combine for 65 percent of the new ETF's weight.
“With the launch of the Pacer US Small Cap Cash Cow ETF and the Pacer Developed Markets International Cash Cows 100 ETF, Pacer ETFs now offers four ETFs in the Cash Cows Index Series, adding to the four Trendpilot ETFs in the Trendpilot Series,” according to the statement. “The firm has been steadily increasing in growth since inception, amassing over $1 billion in assets under management in just two years, as demand for passive, rules-based funds continues to grow.”
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