Pacer ETFs has seen nearly $6 billion in inflows across its Pacer Cash Cows Index ETF Series over one year as of May 23. As a result, the Pacer US Cash Cows 100 ETF (COWZ), which invests in large-caps, has now become the firm’s largest fund based on assets under management, with $5.5 billion in assets as of May 23. COWZ is a strategy-driven ETF aiming to provide capital appreciation over time by screening the Russell 1000 for the top 100 companies based on free cash flow yield.
“We’re very proud of the success of our Cash Cows series, both on a performance and asset-growth basis, especially since the start of this year,” said Sean O’Hara, president of Pacer ETFs Distributors, in a news release. “We’ve long believed that investing in companies that generate strong free cash flow can be an attractive approach for value-seeking investors, particularly in a volatile environment, and the growth in this series shows that investors and advisors see merit in this thematic approach.”
Launched in 2016, The Cash Cows Series is comprised of seven ETFs, and is now Pacer’s largest fund family by assets. Pacer’s strategy with these funds is to measure free cash flow relative to a company’s enterprise value. Incorporating enterprise value looks at the true value of a company, including its debt, which is not captured by price/book, the traditional metric for measuring value.
Pacer Financial president Joe Thomson added: “Since our inception, Pacer’s focus has been on delivering innovative strategies that offer investors distinct access to specific themes with a rules-based approach. The success of COWZ and the Cash Cows Series, especially amid market volatility, showcases the thoughtfulness of our approach.”
The Cash Cow Series has $7.2 billion in assets as of May 25.