Pacer Cash Cows ETF Series
Free Cash Flow.
Built for the Long Haul.
The Pacer Cash Cows ETFsTM aim to provide capital appreciation over time by screening broad based indexes to identify value, growth or quality companies with high free cash flow yield or margin.
FCF Yield = Free Cash Flow ÷ Enterprise Value
FCF Margin = Free Cash Flow ÷ Sales
18
ETFs Across 3 Series
3
Series
Value · Growth · Blend
Value · Growth · Blend
FCFY & FCFM
Free Cash Flow Yield & Margin
Selection Criteria
Selection Criteria
Rebalances
From Monthly, Quarterly, to Semi-annually
Interested in cash flow generating companies?
The Cash Cows Series has you covered.
The Pacer Cash Cows Series aims to deliver a comprehensive approach, featuring value, blend, and growth strategies, to meet a broad spectrum of investment needs.
Cash Cows Value Series
Free cash flow yield.
Value focused.
Screens broad based indexes for companies ranked by free cash flow yield (FCF/enterprise value), targeting financially disciplined companies at potentially attractive valuations.
Why Cash Cows Value Series
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Free Cash Flow Yield ScreenRanks companies by FCF divided by enterprise value, prioritizing businesses generating real cash relative to their size.
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ValueDraws from established popular benchmarks — seeking companies that may be undervalued relative to their cash-generating ability.
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Quarterly or Semi-Annual RebalancesPortfolios are reconstituted two to four times a year, keeping holdings aligned with current free cash flow rankings.
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Diversified LineupFrom US large cap to international, the Cash Cows Value lineup spans a range of market segments.
Cash Cows Growth Series
Free cash flow margin.
Growth focused.
Screens growth indexes for companies ranked by free cash flow margin (FCF/sales), identifying high-growth businesses that convert revenue into real cash.
Why Cash Cows Growth Series
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Free Cash Flow Margin ScreenRanks companies by FCF as a percentage of revenue — identifying growth businesses with real financial discipline behind their expansion.
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GrowthSources from popular benchmarks — prioritizing companies with robust FCF margins.
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Quarterly or Semi-Annual RebalancesPortfolio is reconstituted two to four times a year, keeping holdings aligned with current free cash flow margin rankings.
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Broader DiversificationProvides limited exposure to benchmark-heavy positions.
Cash Cows Blend Series
Free cash flow margin & ROIC.
Blended together.
For investors seeking exposure to quality companies from well known index providers.
Why Cash Cows Blend Series
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Known Market UniverseDraws from known indexes, applying the free cash flow screen across a trusted market opportunity set.
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Free Cash Flow Margin & Return on Invested Capital ScreenTop U.S. companies screened by long term consecutive positive free cash flow and the highest free cash flow quality score. FCF ROIC = Free Cash Flow/Total Debt + Equity.
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Monthly, Quarterly or Semi-Annual RebalancesPortfolio is reconstituted two to twelve times a year, keeping holdings aligned with current FCF rankings.
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Quality FocusedDesigned to serve as a core holding within a diversified portfolio.
The Cash Cows Screen
Two Ways to Measure Free Cash Flow
The goal of most investors is to achieve financial security. High free cash flow is an indicator of a company's financial strength. Positive free cash flow indicates a company is generating more cash than it needs to run the business and can invest in growth opportunities.
The Formula — Click to explore
FCFY =
FCFM =
Select a component above to learn more
Free Cash Flow
Cash remaining after a company has paid expenses, interest, taxes, and long-term investments. Can be used to buy back stock, pay dividends, or pursue acquisitions.
Enterprise Value
A company’s market cap adjusted to remove capital structure bias — adding debt and subtracting cash. A more complete picture of company value than market cap alone.
Free Cash Flow
Cash remaining after a company has paid expenses, interest, taxes, and long-term investments. Can be used to buy back stock, pay dividends, or pursue acquisitions.
Sales (Revenue)
Total revenue earned from the sale of products or services in a given period. Dividing FCF by sales shows how efficiently a company converts revenue into cash.
FCF vs. Traditional Value Metrics
FCF
Traditional
Relies on price-to-book (P/B)
No
Yes
Reflects real cash generated
Yes
Sometimes
Accounts for intangible assets
Yes
No
Value Series
Free Cash Flow Yield
Measures a company’s total free cash flow relative to its enterprise value. This is an internal statistic and does not constitute investor yield.
Value
Based investing
Quality
Focused indicator
Capital
Appreciation potential
Discount
Exposure opportunity
Growth Series
Free Cash Flow Margin
A profitability ratio that compares a company’s free cash flow to its revenue to understand the proportion of revenue that becomes free cash flow
Growth
Based investing
Quality
Focused indicator
Profitability
Potential
Long-Term
Return possibility
1
The goal of most investors is to achieve financial security. High free cash flow is an indicator of a company’s financial strength.
2
Positive free cash flow indicates a company is generating more cash than it needs to run the business and can invest in growth opportunities.
3
Companies generating high free cash flow yields have the ability to grow dividends over time and produce better earnings.
4
Using strategies that are constantly re-evaluating and rebalancing is the key to owning quality companies generating high free cash flow.
1
FCF is the funding source for growth.
2
Free cash flow is the internally sourced capital.
3
FCF can be strategically allocated to endeavors such as research and development, advertising, and marketing, which are instrumental in driving business expansion and growth.
4
The FCF production indicated by high FCF margin highlights a company’s ability to self-finance its growth initiatives, aligning it with better growth potential.
COWZ
Three Strategies. Many Corners of the Market.
The Cash Cows methodology scales across market cap and geography, applying rigorous free cash flow screens wherever quality companies can be found.
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United States
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International
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Emerging Markets
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Global
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|---|---|---|---|---|
| Cap Size | Developed · Domestic | Developed · Ex-US | Developing | Multi-Region |
| Large Cap | ||||
| Mid Cap | — | — | — | |
| Small Cap | — | — | — | |
| Thematic | — | — | — | |
| Fixed Income | — | — | — |
United States — Developed · Domestic
Emerging Markets — Developing
Large Cap
Global — Multi-Region
Large Cap
Diversified Large Cap Example
Find Your Fit in the Pacer Cash Cows Series
Value, blend, and growth strategies built on free cash flow screens. A quality-focused solution across every investment style.
Val
Bln
Grw
Lg
COWZ
LCOW
COWG
Md
Sm
COWZ
Value
COWZ
FCF Yield
- Seeks to identify quality companies with strong FCF trading at a discount
- Seeks to provide a diversified complement to traditional value strategies with minimal overlap.
- FCF-weighted, capped to avoid concentration risk
- Universe: Russell 1000 Index
LCOW
Blend
LCOW
FCF Margin & ROIC
- Requires 10 consecutive years of positive FCF
- Targets operating efficiency and disciplined capital allocation
- Designed as a core portfolio holding
- Universe: S&P 500 Index
COWG
Growth
COWG
FCF Margin
- Targets growth companies with strong profitability and sustainable cash generation
- Strategic complement to growth funds with broader diversification
- Aims to limit exposure to benchmark-heavy positions
- Universe: Russell 1000 Index
Explore the Series
| Value | Cash Cows Value Series | Quality companies with strong FCF potentially trading at a discount. | Learn More → | |
| Growth | Cash Cows Growth Series | Growth leaders that efficiently convert revenue into free cash flow as they scale. | Learn More → | |