The ETF, known as the Pacer Emerging Markets Cash Cows Index ETF (ECOW), is managed by Pacer Advisors, Inc. This fund employs a passive management strategy to replicate the performance of the proprietary Emerging Markets Cash Cows Index. The Index focuses on large and mid-cap companies in emerging markets with high free cash flow yields, commonly referred to as cash cows. The screening process for inclusion in the Index involves criteria such as average projected free cash flows and earnings, market capitalization, and average daily trading value. The fund aims to provide investors with exposure to these promising emerging market companies with the potential for strong free cash flow generation. Please note that the information provided is based on my knowledge as of September 2021, and there may have been developments or changes related to the ECOW ETF or its issuer since that time.
The Freedom Day Solutions, LLC actively manages the ECOW ETF with the goal of achieving rising dividend income streams over time. This ETF focuses on equity securities, primarily large- and mid-capitalization companies, listed on U.S. stock exchanges with market capitalizations generally above $1 billion. The investment strategy combines fundamental analysis and quantitative metrics to identify dividend-paying companies with the potential for future dividend increases. ECOW typically holds a portfolio of approximately 30 to 50 companies, with sector exposures as of September 30, 2022, including Health Care (20.8%), Consumer Discretionary (15.2%), Energy (14.1%), Financials (12.8%), and Information Technology (11.3%). The Fund's dividend policy aims for at least 80% of its net assets to be invested in dividend-paying securities, subject to change with 60 days' notice to shareholders.
Tracking the High Cash Flow Yield Emerging Markets Index is the primary objective of the Pacer Emerging Markets Cash Cows ETF. This ETF utilizes a passive management investment approach to closely mirror the total return performance of the Index before accounting for fees and expenses. The Index, developed by Index Design Group, a subsidiary of Pacer Advisors, Inc., focuses on large and mid-cap companies in emerging markets known for their high free cash flow yields, often referred to as cash cows. The Index universe is initially drawn from the FTSE Emerging Markets Index, with companies screened based on projected free cash flows and earnings, resulting in the inclusion of the top 100 companies with the highest free cash flow yield. Weightings within the Index are based on trailing twelve-month free cash flow and are subject to certain caps and limits. This ETF aims to provide investors with exposure to emerging market companies with strong cash flow potential and is periodically reconstituted and rebalanced.
The correlation aspect of the Pacer Emerging Markets Cash Cows ETF (ECOW) is closely tied to its tracking of the proprietary Index Design Group's methodology for emerging market companies with high free cash flow yields. ECOW's correlation primarily relates to the performance of emerging market cash cow companies, making it a valuable tool for investors seeking exposure to this segment of the market. While specific correlations with other assets may vary, investors can use ECOW's correlation insights to gain exposure to emerging markets with a focus on companies with strong free cash flow yields. To explore and analyze these correlations in detail, investors can leverage the ETF Insider web app, which offers a user-friendly visualization tool for deep and insightful data on various U.S. ETFs, helping investors identify potential overlap and opportunities within their portfolios.
The ECO Advisors Global Yield ETF (ECOW) focuses on companies in emerging markets with high free cash flow yields, commonly known as cash cows. These markets include countries listed in the FTSE Emerging Markets Index, with significant exposure to Chinese companies as of June 30, 2023. ECOW employs a passive management strategy, tracking the proprietary Index Design Group methodology, aiming to offer investors exposure to large and mid-cap companies with strong free cash flows. Companies are selected based on their projected free cash flows and earnings, with weightings capped at 2% for individual companies, and a maximum limit of twenty companies per country and sector. This approach seeks to provide attractive yield potential from emerging market cash cow stocks, while still maintaining a diversified portfolio.
The exposure characteristics of the Pacer Emerging Markets Cash Cows 100 ETF (ECOW) are rooted in its passive investment strategy, designed to track the total return performance of the Index. This index focuses on large and mid-capitalization companies in emerging markets with high free cash flow yields, often referred to as cash cows. As of June 30, 2023, ECOW had significant exposure to companies in China, providing investors with an opportunity to access this influential market. The ETF selects its holdings based on projected free cash flows and earnings, ultimately offering exposure to emerging market companies poised for growth and financial stability. For investors seeking diversified exposure to emerging markets with a focus on cash-generating companies, ECOW can be a valuable addition to their portfolio.Discovering the specific exposure of ECOW and understanding its holdings, sectors, and regional distribution can be efficiently achieved through the ETF Insider web app. This tool provides in-depth and valuable data on US ETFs, including visualization tools that highlight overlap, correlations, and other critical insights, helping investors make informed decisions.
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