Pacer Dev Mkts Intl Csh Cows 100 ETF retains its Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and yield exposure compared with category peers. High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like overall affordable fees and a favorable lineup success ratio. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

Suncor Energy

ArcelorMittal

Telefonica SA

Tractor Supply

CNA Financial

Imperial Oil

IAMGOLD

Statoil ASA Sponsored

Burning Rock Biotech

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Pacer Dev Mkts Intl Csh Cows 100 ETF earns a High Process Pillar rating. The predominant contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Impressive risk-adjusted performance also bolsters the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. The parent firm's five-year risk-adjusted success ratio of 69% contributes to the process. The measure indicates the percentage of a firm's funds that survived and surpassed their respective category's median Morningstar Risk-Adjusted Return for the period. Their relatively high success ratio suggests that this firm does well for investors and that this fund may benefit from that.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the total return performance, before fees and expenses, of the Pacer Developed Markets International Cash Cows 100 Index.  The fund will invest at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index uses an objective, and rules-based methodology to provide exposure to large and mid-capitalization non-U.S. companies in developed markets with high free cash flow yields. 

 The portfolio is overweight in energy and industrials relative to the category average by 15.9 and 14.5 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and technology, underweight the average by 22.3 and 6.9 percentage points of assets, respectively. The portfolio is positioned across 107 holdings and is relatively concentrated. Specifically, 21.9% of the fund’s assets are housed within the top 10 holdings, compared with the typical peer's 13.9%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 59% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

High

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 instability of talent across its parent firm. The firm's asset-weighted manager tenure of seven years suggests it could do more to retain portfolio managers. The turnover of its management team also holds the rating back. The fund last saw a manager change two years ago.

Below Average

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 Developed Markets International Cash Cows 100 ETF

ICOW tracks an index of 100 companies out of the FTSE Developed Ex-US Index selected and weighted by free cash flow.

Pacer Developed Markets International Cash Cows 100 ETF holds 100 large and mid-cap stocks with superior free cash flow in developed markets. The fund is overweight in industrials and Japan, but well diversified across holdings.

ICOW: Attractive Fundamentals, Average Performance

Pacer Developed Markets International Cash Cows 100 ETF seeks to provide exposure to the top 100 international companies based on free cash flow yield. ICOW currently has $915 million in net assets and charges a net expense ratio of 0.65%. The Fund has outperformed cap-weighted international index products since its launch in June 2017.

ICOW: History May Not Repeat Itself

Based on the concept of a "cash cow," ICOW is an interesting investment vehicle for developed-world quality and value exposure. ICOW's portfolio is heavy in old-economy stocks, with energy being the major allocation. Japan, the UK, and Canada are the key countries represented. ICOW's strategy is obviously potent as the vehicle beat a few simpler developed-world ETFs in the past.

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The fund's rapid ascent puts it in rarified air.

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

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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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After five years of strong equity returns, rising interest rates and rising inflation could put an end to all of that, according to Sean O'Hara, president of Pacer ETFs. “We've gone through five years of really, really nice equity returns, and I don't think we're going to see those kinds of returns going forward on [.

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Since we know that a cash cushion is always needed in a rough market, one can easily look at the indicators related to cash flows to measure a company's performance.

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Targeted exchange traded fund strategies centered around free cash flow yield can help solidify your portfolio in today's strenuous investing landscape. In the recent webcast, Are Value Managers Measuring the Wrong Thing?

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News for Pacer Developed Markets International Cash Cows 100 ETF ETF (ICOW)