The Pacer US Small Cap Cash Cows 100 ETF (CALF) aims to capture the highest quality small-cap companies in the U.S. by screening the S&P SmallCap 600® Index for the top 100 companies with the highest free cash flow yield. Its expense ratio is 0.59%.
Meanwhile, the Pacer Developed Markets International Cash Cows 100 ETF (ICOW) selects the top 100 companies with the highest free cash flow yield in the FTSE Developed ex-US Index. Its expense ratio is 0.65%.
Both of these new funds will trade on the BATS exchange, which has impressively grabbed a number of new listings as of late.
Pacer commented on the new funds via press release:
“At Pacer ETFs, we believe free cash flow yield is the best metric to measure quality,” says Sean O’Hara, President of Pacer ETF Distributors. “Our research shows companies with high free cash flow yield tend to outperform the broader market over time because they are more likely to have healthy balance sheets and growth potential. Having the cash flow story resonate well with Pacer Global Cash Cows Dividend ETF (GCOW) and Pacer US Cash Cows 100 ETF (COWZ), we are adding the ETFs to create more options for advisors looking for quality investment strategies.”
These two new funds are certainly worth keeping an eye on, as Pacer has shown impressive growth in its just two years as an ETF issuer. In that span, the firm has gathered over $1 billion in assets, and now counts a total of eight ETFs in its arsenal.
Once these new ETFs get some trading history under their belts, we’ll be sure to issue SMART Grades on them. Until then, you can visit Pacer’s website for more info.