Weakness in Pacer Global Cash Cows Dividend ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Neutral. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy earns a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in yield exposure and an underweight in volatility exposure compared with category peers. High yield exposure is attributed to holding more stocks with high dividend or buyback yields. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including overall reasonable fees and a favorable lineup success ratio.

Analyst Rating

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Ford Motor Company

Exxon Mobil

AbbVie

Chevron

ConocoPhillips

Philip Morris

Verizon

Enbridge

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Pacer Global Cash Cows Dividend ETF earns a Below Average Process Pillar rating. 

The process benefits from the parent firm's five-year risk-adjusted success ratio of 69%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. However, the rating is limited by the fund's weak long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's five-year retention rate of 52% also holds the process back.

 This strategy tends to hold larger, more value-oriented companies than its average peer in the Global Large-Stock Value Morningstar Category. Analyzing additional factors, the managers have consistently overweighted yield-paying companies compared with Morningstar Category peers in recent years, shown by the portfolio's high exposure to stocks paying dividends or buying back shares. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward low-volatility stocks in recent years, meaning companies with a lower historical standard deviation of returns. These companies have historically been a valuable ballast to steady portfolio returns during market downturns. Similarly, in recent months, the strategy also had less exposure to the Volatility factor than peers. During the last few years, this strategy has also tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. In this month, the strategy also had more exposure to the Quality factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in energy and consumer cyclical relative to the category average by 13.7 and 3.8 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and technology, underweight the average by 15.0 and 7.9 percentage points of assets, respectively. The strategy owns 106 securities and is relatively concentrated. Specifically, 21.6% of the strategy's assets are housed within the top 10 holdings, compared with the category’s 14.0% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 47% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Below Average

Process

Pacer’s team receives a Below Average People Pillar rating. The team benefits from its parent firm's five-year success ratio of 69%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. However, the rating is held back by the turnover of management across its parent firm. The firm's asset-weighted manager tenure of seven years suggests it could do more to retain portfolio managers. The instability of its management team also holds the rating back. The fund last saw a manager change two years ago.

People

Pacer's track record as a steward is mixed, leading to an Average Parent Pillar rating. One notable advantage of Pacer is its below-average fees. On average, the firm's open-end and exchange-traded fund fees fall in the second-lowest quintile of category peers. The product lineup at Pacer has exhibited exemplary durability compared with peer asset managers when looked at over the past five years. Notably, its five-year risk-adjusted success ratio stands at 69%, meaning that 69% of its products have both survived and beaten their respective category median on a risk-adjusted basis. Portfolio management turnover at Pacer is higher than at peer firms, detracting from the overall assessment of the firm's stewardship. Turnover in the portfolio-management ranks can happen for a number of reasons, including mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for investors, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture.

Average

Parent

Pacer Global Cash Cows Dividend ETF

GCOW tracks an index of developed-market large-cap stocks, selected by free cash flow yield and dividend yield, and weighted by aggregate dividends.

High free cash flow stocks have produced negative alpha since Q3 last year, contradicting the sentiment favoring them. Pacer Global Cash Cows Dividend ETF has underperformed the S&P 500 and All-Country World Index over the past year, but emerging strength in the Energy sector would benefit the cyclical fund. The GCOW ETF has grown in assets over the past two years, and I highlight one key technical price point both the bulls and bears should monitor.

GCOW: A Big Energy Sector Bet Looks Less Risky Today (Rating Upgrade)

Pacer Global Cash Cows Dividend ETF focuses on global companies with strong cash flows and high dividend distributions. The fund holds mostly industrial companies, including car manufacturers, mining companies, and pharmaceutical companies. The fund's holdings have an average cash flow yield of 8% and a P/E of 6.7 which is pretty attractive from a valuation perspective.

GCOW: Rare Combination Of High Yield And Dividend Growth

Risk/reward is not favorable for mega-cap growth stocks, as their valuations becomes stretched. A better risk/reward bet is international equities, where valuations are much more reasonable. The Pacer Global Cash Cows Dividend ETF is a value-focused fund that provides exposure to international companies with high free cash flows and dividends.

GCOW: Large-Cap Global Value Fund With Attractive Distribution Yield

Pacer Global Cash Cows Dividend ETF offers exposure to global dividend-paying companies with strong cash flow and consistent dividend payments. The GCOW ETF follows a strategy that identifies companies with high free cash flow and dividend yields.

GCOW: A Strong Strategy With A Cash Flow Focus

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MALVERN, Pa.--(BUSINESS WIRE)--Pacer ETFs Surpasses $25B Milestone in Assets Under Management.

Pacer ETFs Surpasses $25B Milestone in Assets Under Management

Pacer Global Cash Cows Dividend ETF holds dividend stocks with superior free cash flow in developed markets. Energy is the heaviest sector with about 25% of asset value. The yield, valuation metrics, and dividend growth rate are very attractive.

GCOW: Excellent Value And Dividend Growth, But Average Return

Pacer Global Cash Cows Dividend ETF pays quarterly dividends, generates decent yield, and has recorded strong average total return both in the short run as well as in the long run. GCOW is a reasonably well-diversified exchange-traded fund, with investments in over a dozen of countries, spread over all industry segments except the financial sector.

GCOW: Diversified Developed Market ETF With Low Valuation, Decent Yield

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MALVERN, Pa.--( BUSINESS WIRE )--Pacer ETFs celebrates an incredible year of growth driven by its suite of strategy-driven, rules-based ETFs, capped off by the outstanding achievement of reaching $19.6 billion in assets as of Dec. 30, 2022. After starting 2022 with $10.2 billion in AUM, Pacer achieved a 92.2% growth rate, nearly doubling its assets. Within the first week of the New Year, Pacer surpassed $20 billion in assets signaling a strong start for 2023.

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Value Funds are outperforming Growth Funds as liquidity dries up and the cost of capital increases. With its focus on companies with above-average cash flow and dividend yields, the Pacer Global Cash Cows Dividend ETF is well-positioned to shine in the current environment.

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Exchange traded fund investors should consider the benefits of cash cow stocks and how they can enhance their investment portfolios.

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Cash cow companies provide consistent cash flows and can help strengthen core investment allocations. In the upcoming webcast, Cash Cows: A Simple Pacer ETFs Strategy for Complex Markets, Sean O'Hara, president of Pacer ETFs Distributors, will highlight the benefits of cash cow stocks and how they can enhance financial advisors' client portfolios.

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The global market is at a critical juncture right now.

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High free cash flow has been a popular investment thesis in 2022. Such companies often pay big dividends and might be seen as more stable than many non-profitable firms.

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﻿﻿ VettaFi's vice chairman Tom Lydon discussed the Pacer Global Cash Cows Dividend ETF (GCOW) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” The last six weeks have seen the markets stabilize, even as the Fed continues to hike interest rates.

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Year to date, the Dow Jones, the S&P 500 and Nasdaq are all deep in correction territory. Only a few high-dividend ETFs are in the positive zone.

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An exchange traded fund strategy that focuses on cash cows can function as the core foundation for any investment portfolio. In the recent webcast, Why Now is the Time to Focus on Cash Flow and High Free Cash Flow Yield, Sean O'Hara, president of Pacer ETFs, argued that the way many investors traditionally categorize the [.

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As interest rates rise and the growth outlook becomes more uncertain, investors can build out their core portfolio allocations with reliable “cash cow” companies, or firms that have demonstrated consistent cash flows. In the upcoming webcast, Why Now is the Time to Focus on Cash Flow and High Free Cash Flow Yield, Sean O'Hara, president [.

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