Institutional Presentation PACER CASH COWS INDEX ETF ...€¦ · FOR INVESTMENT PROFESSIONAL USE...

Institutional Presentation

PACER CASH COWS INDEX® ETF STRATEGIES

FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR USE WITH THE INVESTING PUBLIC.

FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR USE WITH THE INVESTING PUBLIC. 1

BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUNDS’ INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS. A COPY MAY BE OBTAINED BY VISITING WWW.PACERETFS.COM OR CALLING 1-877-337-0500. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.

An investment in the Funds is subject to investment risk, including the possible loss of principal. Pacer ETF shares may be bought and sold on an exchange through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained. The risks associated with this fund are detailed in the prospectus and could include factors such as calculation methodology risk, concentration risk, currency exchange rate risk, equity market risk, ETF risks, foreign securities risk, geographic concentration risk, high portfolio turnover risk, large- and mid-capitalization investing risk, smaller companies risk, limited operating history risk, other investment companies risk, passive investment risk, tracking risk, sector risk, non-diversification risk, style risk, and/or special risks of exchange traded funds. Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 1000 Index (the “Index”) is a trademark of Frank Russell Company (“Russell”) and has been licensed for use by Index Design Group, LLC (“IDG”). The Pacer US Cash Cows 100 Index is not in any way sponsored, endorsed, sold or promoted by Russell or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the Index (upon which the Pacer US Cash Cows 100 Index is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the Pacer US Cash Cows 100 Index. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to IDG or to its clients. The Index is calculated by Russell or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein.

FTSE International Limited (“FTSE”) © FTSE 2018. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and / or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE’s express written consent. FTSE does not promote, sponsor or endorse the content of this communication. Pacer US Small Cap Cash Cows Index (the “Index”) is the property of Index Design Group, LLC which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Index Design Group, LLC. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). To learn more about the Index methodology, please visit www.indexdesigngroup.com or call 877-337-0500. DEFINITIONS OF CERTAIN DEFINED TERMS USED HEREIN:Annualized average return represents the calculated hypothetical rate of return that, if cumulatively applied to each relevant annual period during the time period indicated, would result in the actual cumulative rate of return for the entire period. Maximum return represents the highest calendar year return as measured during the period indicated.Minimum return represents the lowest calendar year return as measured during the period indicated.Annualized volatility is based on monthly returns from the most recent date indicated on the page and expressed as a standard deviation percentage. Standard deviation is a measure of volatility and illustrates the extent of variation (whether higher or lower) that exists from the average given set of results. A low standard deviation indicates that the results tend to be very close to the average result (a low degree of volatility). In contrast, a high standard deviation indicates that the results are spread out over a large range of outcomes (a high degree of volatility). Because the standard deviation is based on historical data, it may not predict variability in annualized performance of the Pacer ETFs in the future. Maximum drawdown represents the maximum percentage loss that the relevant index incurred from its peak level to its lowest level during the time period indicated. P/E ratio is a fundamental measure commonly used to determine if an investment is valued appropriately. Each holding’s P/E is the latest closing price divided by the latest fiscal year’s earnings per share. Negative P/E ratios are excluded from this calculation. Upside/downside capture ratio shows you whether a given fund has outperformed--gained more or lost less than--a broad market benchmark during periods of market strength and weakness. Cash Cows Index® is a trademark of Index Design Group, LLC. © 2020, Pacer Financial, Inc., All rights reserved. Distributor: Pacer Financial, Inc., member FINRA, SIPC, an affiliate of Pacer Advisors, Inc. NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED


PACER CASH COWS INDEX® ETF LINEUP

Pacer Cash Cows Index® ETFs

(1)Holdings capped at 2% for each company at time of rebalance. Russell 1000 Index is a market-capitalization weighted index representing the top 1000 large-cap stocks in the Russell 3000 Index. S&P SmallCap 600® Index measures the performance of 600 small sized companies in the US equity market, with market capitalization ranging from $450 million to $2.1 billion USD. The index does not overlap holdings with the S&P 500® or S&P MidCap 400®. FTSE Developed ex-US Index Comprised of large (85%)-and mid (15%)-cap stocks providing coverage of developed markets (24 countries), excluding the US. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market-capitalization. FTSE Developed Large-Cap Index is a market-capitalization weighted index representing the performance of large-cap stocks in developed markets. FTSE Emerging Markets Index: Designed to measure the performance of large-, medium- and small-capitalization companies located in emerging market countries throughout the world.S&P 900 Pure Growth Index: Composed of companies found in the S&P 400 and S&P 500 Indices, including mid- and large-cap stocks based on growth potential with respect to sales, earnings relative to price, and momentum.

ETF NameETF Ticker

ETF Inception Date Benchmark Index

Total Expenses

Intraday Indicative Value Ticker CUSIP Strategy1

Rebalanced & Reconstituted

Pacer US Cash Cows 100 ETF COWZ 12/16/16 Russell 1000 Index 0.49% COWZ.IV 69374H881Top 100 large-cap companies with the highest free cash flow yield in the Russell 1000 Index

Quarterly

Pacer Global Cash Cows Dividend ETF GCOW 2/22/16

FTSE Developed Large-Cap Index

0.60% GCOW.IV 69374H709Top 100 global companies with the highest free cash flow yield and highest dividend yield in the FTSE Developed Large-Cap Index

Semi-annually

Pacer Developed Markets International Cash Cows 100 ETF

ICOW 6/16/17FTSE Developed ex-US Index

0.65% ICOW.IV 69374H873Top 100 international companies with the highest free cash flow yield in the FTSE Developed ex-US Index

Semi-annually

Pacer US Small Cap Cash Cows 100 ETF CALF 6/16/17

S&P SmallCap 600® Index

0.59% CALF.IV 69374H857Top 100 small-cap companies with the highest free cash flow yield in the S&P SmallCap 600® Index

Quarterly

Pacer Emerging Markets Cash Cows 100 ETF ECOW 5/2/19

FTSE Emerging Markets Index

0.70% ECOW.IV 69374H865

Top 100 companies with the highest free cash flow yield in the FTSE Emerging Markets Index. Holdings capped at 2% for each company at time of rebalance.

Semi-annually

Pacer US Cash Cows Growth ETF BUL 5/2/19

S&P 900 Pure Growth Index

0.60% BUL.IV 69374H667

Top 50 companies with the highest free cash flow yield in the S&P 900 Pure Growth Index. Holdings capped at 5% for each company at time of rebalance.

Quarterly


THE STRATEGY An objective rules-based methodology that uses a quality screen to select the top companies in the index universe.

All data as of June 2020 quarterly rebalance.

PACER US CASH COWS 100 INDEX

(1)The individual components of the index are weighted by their total market capitalization. Market capitalization is determined by multiplying each company’s market price by their total outstanding shares. Companies are ranked in descending order based on their market cap in dollars. (2)Financial companies, other than real estate investment trusts (REITs), are excluded from the index universe. In addition, companies with negative free cash flow are excluded based on FactSet analyst consensus estimates using average projected FCF and earnings over the next two years. (3)The 3-year dividend growth is a weighted average of each company’s 3-year dividends per share growth rate. The growth rate is determined by measuring the change between each company’s most recent trailing 12 month dividends per share versus their trailing 12 month dividend per share 3 years ago. (4)Remaining 100 companies are weighted by their trailing twelve month free cash flow. Free cash flow weighting is calculated as a company’s operating cash flow minus capital expenditures. Companies are ranked in descending order based on their free cash flow in dollars.

Top 100 companies with the highest free cash flow yield. • Weighted by free cash flow (highest trailing twelve month) • Holdings capped at 2% for each company at time of rebalance • Reconstituted and rebalanced quarterly

WEIGHTED BY FREE CASH FLOW4 – Capped at 2%2SECURITY SELECTION1

Market Cap Weighted1 3 THE INDEX

RUSSELL 1000 INDEX2

FREE CASH FLOW YIELD SCREEN

Free cash flow yield: 3.50%P/E ratio: 25.41 3-year dividend growth3: 10.10%


1,000 Companies100 Companies Ranked based on trailing twelve month period.


HIGHEST TRAILING 12 MONTH FREE CASH FLOW100 Companies


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

12/31/1991 12/31/1995 12/31/1999 12/31/2003 12/31/2007 12/31/2011 12/31/2015 12/31/2019


(1)All Indexes shown are Total Return Indexes. Source: Pacer Advisors, FTSE and FactSet. The hypothetical backtested index performance of the Pacer US Cash Cows 100 Index is shown net of fees and reflects the reinvestment of dividends. The annual total expense is 0.49%. The Index was released on 12/8/16. Any data shown prior to this date is hypothetical, retrospectively calculated, and is based on rules-based criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk or market and economic factors that may affect the actual performance. The actual performance of the Index may vary significantly from the backtested index data. The start date for this data was chosen based on the validity of fundamental data for the Russell 1000 Index. The results shown are hypothetical and do not reflect actual returns. PAST PERFORMANCE (WHETHER RETROSPECTIVELY CALCULATED OR ACTUAL HISTORICAL) IS NOT INDICATIVE OF FUTURE RESULTS. YOU CANNOT INVEST DIRECTLY IN AN INDEX.

Retrospectively calculated Pacer Cash Cows Index® performance and historical comparisons. Pacer US Cash Cows 100 Index is net of fees.

HISTORICAL PERFORMANCE AND VOLATILITY COMPARISON (%)1 12/31/1991 – 6/30/2020

Pacer US Cash Cows 100 Index

Russell 1000 Index

Russell 1000 Value Index

Annualized Average Return 14.76 9.60 9.14

Annualized Volatility 19.43 18.47 18.45

Upside Capture 116.38 100.00 93.72

Downside Capture 95.82 100.00 93.01

MINIMUM AND MAXIMUM CALENDAR YEAR RETURNS (%)1 12/31/1991 – 6/30/2020


Russell 1000 Index


Maximum Return

72.12 (2009)

37.77 (1995)

38.36 (1995)

Minimum Return

-37.61 (2008)

-37.60 (2008)

-36.85 (2008)

INDEX CHARACTERISTICS (%) as of 6/30/2020


Russell 1000 Index


Free Cash Flow Yield 8.67 3.35 4.01

P/E Ratio 11.57 23.04 17.32

$507,425

$136,636

$7,500

$75,000

$750,000

12/31/1991 12/31/1995 12/31/1999 12/31/2003 12/31/2007 12/31/2011 12/31/2015 12/31/2019

HYPOTHETICAL GROWTH OF $10,0001 12/31/1991 – 6/30/2020

HYPOTHETICAL DIVIDENDS EARNED ON GROWTH OF $100 INVESTMENT 12/31/1991 – 6/30/2020

$42.32

$6.29

Pacer US Cash Cows 100 Index Russell 1000 IndexRussell 1000 Value Index

Pacer US Cash Cows 100 Index DividendsRussell 1000 Index Dividends

$121,067



Company Weight (%) GICS SectorFree Cash Flow Yield

(%)

Dell Technologies Inc Class C 2.33 Information Technology 5.88

eBay Inc. 2.31 Consumer Discretionary 6.45

Best Buy Co., Inc. 2.27 Consumer Discretionary 11.23

AbbVie, Inc. 2.24 Health Care 6.81

QUALCOMM Incorporated 2.21 Information Technology 6.53

Gilead Sciences, Inc. 2.15 Health Care 8.40

HP Inc. 2.15 Information Technology 10.88

Target Corporation 2.12 Consumer Discretionary 6.87

Cisco Systems, Inc. 2.09 Information Technology 7.98

Cognizant Technology Solutions Corporation Class A

2.08 Information Technology 7.81

Total 21.95

TOP 10 HOLDINGSas of 6/30/2020

Source: FactSet. Free Cash Flow Yield = Free Cash Flow/Enterprise Value

SECTOR BREAKDOWNas of 6/30/2020

21.55% Information Technology

20.61% Health Care

18.11% Consumer Discretionary

8.47% Industrials

7.88% Communication Services7.56% Consumer Staples

3.63% Energy

8.95% Materials

2.55% Utilities

0.69% Real Estate



DON’T PUT ALL YOUR EGGS IN THE SAME BASKET Pacer US Cash Cows 100 Index offers exposure to sectors typically not in other value indexes. Pairing the Pacer US Cash Cows 100 Index with the Russell 1000 Value Index creates a more diversified portfolio.


Pacer US Cash Cows 100 Index Russell 1000 Value S&P 500 Index 50% Pacer Cash Cows/ 50% Russell Value

Information Technology 21.55 10.22 27.46 15.88

Health Care 20.61 14.08 14.63 17.35

Consumer Discretionary 18.11 6.98 10.83 12.54

Materials 8.95 4.48 2.52 6.72

Industrials 8.47 12.34 7.99 10.40

Communication Services 7.88 9.33 10.78 8.60

Consumer Staples 7.56 8.12 6.97 7.84

Energy 3.63 5.28 2.83 4.46

Utilities 2.55 5.91 3.07 4.23

Real Estate 0.69 4.75 2.84 2.72

Financials -- 18.52 10.08 9.26

Weighting Difference from the S&P 500 (%)

43.14 46.20 - 29.42


PACER GLOBAL CASH COWS DIVIDEND INDEX STRATEGY

THE STRATEGY An objective rules-based methodology that uses quality and value screens to select the top companies in the index universe.

WEIGHTED BY DIVIDENDS3 Capped at 2%2SECURITY SELECTION1

Market-Cap Weighted1 3 THE INDEX

(1)The individual components of the index are weighted by their total market-capitalization. Market-capitalization is determined by multiplying each company’s market price by their total outstanding shares. Companies are ranked in descending order based on their market-cap in dollars. (2)Financial companies, other than real estate investment trusts (REITs), are excluded from the Index universe. In addition, companies with negative free cash flow are excluded based on FactSet analyst consensus estimates for average projected FCF and earnings over the next two years. (3)Remaining 100 companies are weighted by their trailing twelve month dividends. Dividend weighting is calculated by adding the 100 companies’ dividends and dividing the total by each company’s trailing 12 month dividends.

FTSE DEVELOPED LARGE-CAP INDEX2

1,000 Companies

FREE CASH FLOW YIELD SCREEN 300 Companies Ranked based on trailing twelve month period.

Top 100 companies with the highest free cash flow yield and highest dividend yield. • Weighted by dividends (highest trailing twelve month) • Holdings capped at 2% for each company at time of rebalance • Reconstituted and rebalanced semi-annually in June and December

WEIGHTED BY DIVIDENDS100 Companies

Free cash flow yield: 3.38%Dividend yield: 2.21% P/E ratio: 22.61



DIVIDEND YIELD SCREEN 100 Companies Ranked based on trailing twelve month period.


All data as of June 2020 semi-annual rebalance.


PACER GLOBAL CASH COWS DIVIDEND INDEX

(1)All Indexes shown are Total Return Indexes. Source: Pacer Advisors, FTSE and Bloomberg. FTSE Developed Large-Cap Index was created on 12/31/2004. The hypothetical backtested index performance of the Pacer Global Cash Cows Dividend Index is shown net of fees and reflects the reinvestment of dividends. The annual total expense is 0.60%. The Index was released on 1/25/16. Any data shown prior to this date is hypothetical, retrospectively calculated, and is based on rules-based criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk or market and economic factors that may affect the actual performance. The actual performance of the Index may vary significantly from the backtested index data. The start date for this data was chosen based on the validity of the fundamental data of the FTSE Developed Large-Cap Index. The results shown are hypothetical and do not reflect actual returns. PAST PERFORMANCE (WHETHER RETROSPECTIVELY CALCULATED OR ACTUAL HISTORICAL) IS NOT INDICATIVE OF FUTURE RESULTS. YOU CANNOT INVEST DIRECTLY IN AN INDEX.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

12/31/2004 12/31/2006 12/31/2008 12/31/2010 12/31/2012 12/31/2014 12/31/2016 12/31/2018


Pacer Global Cash Cows Dividend

Index

FTSE Developed

Large-Cap Index

FTSE Developed Large Top 100

Dividend



Upside Capture 92.65 100.00 106.83




Index

FTSE Developed

Large-Cap Index


Dividend

Maximum Return

37.87 (2009)

30.22 (2009)

54.85 (2009)

Minimum Return

-30.16 (2008)

-39.93 (2008)

-56.06 (2008)

Retrospectively calculated Pacer Cash Cows Index® performance and historical comparisons. Pacer Global Cash Cows Dividend Index is net of fees.


$30,598

$27,972

Pacer Global Cash Cows Dividend Index FTSE Developed Large-Cap IndexFTSE Developed Top 100 Dividend



Index

FTSE Developed

Large-Cap Index


Dividend


P/E Ratio 12.60 20.29 11.00

Dividend Yield 6.56 2.44 8.01

$15,571


PACER GLOBAL CASH COWS DIVIDEND INDEX


CompanyWeight

(%) Country GICS SectorFree Cash Flow

Yield (%)Dividend Yield

(%)

AbbVie, Inc. 2.26 United States Health Care 6.81 4.58

SoftBank Corp. 2.21 JapanCommunication Services

7.27 6.13

Nippon Telegraph and Telephone Corporation

2.20 JapanCommunication Services

7.10 3.75

NTT DoCoMo, Inc. 2.17 JapanCommunication Services

7.74 4.13

Deutsche Telekom AG 2.11 GermanyCommunication Services

4.19 4.00

BHP Group Ltd 2.10 Australia Materials 7.72 6.01

Rio Tinto plc 2.10 United Kingdom Materials 9.58 6.83

GlaxoSmithKline plc 2.09 United Kingdom Health Care 4.72 5.02

Verizon Communications Inc. 2.06 United StatesCommunication Services

4.86 4.44

British American Tobacco p.l.c. 2.04 United KingdomConsumer Staples

5.89 7.00

Total 21.34

TOP 10 HOLDINGS as of 6/30/2020

COUNTRY BREAKDOWNas of 6/30/2020

30.28% United States

16.15% Japan

2.86% Norway2.33% Canada

2.11% Germany

8.65% Other

17.20% United Kingdom

9.59% Australia

6.60% Hong Kong

2.01% Spain

2.22% France


20.82% Communication Services

14.71% Materials

5.43% Utilities


18.95% Energy

6.31% Health Care

5.87% Real Estate

4.26% Info Tech

14.36% Consumer Staples

6.34% Industrials




(1)The individual components of the index are weighted by their total market capitalization. Market capitalization is determined by multiplying each company’s market price by their total outstanding shares. Companies are ranked in descending order based on their market cap in dollars. (2)Financial companies, other than real estate investment trusts (REITs), and companies with a market capitalization less than $3 billion USD are excluded from the index universe. In addition, companies with negative free cash flow (FCF) are excluded based on FactSet analyst consensus estimates for average projected FCF and earnings over the next two years. Companies included in the index universe are the 500 most liquid in the FTSE Developed ex-US Index of approximately 1,500 companies. Liquidity is defined as 90-day daily average traded volume multiplied by most recent share price. (3)The 3-year dividend growth is a weighted average of each company’s 3-year dividends per share growth rate. The growth rate is determined by measuring the change between each company’s most recent trailing 12 month dividends per share versus their trailing 12 month dividend per share 3 years ago. (4)Remaining 100 companies are weighted by their trailing twelve month free cash flow. Free cash flow weighting is calculated as a company’s operating cash flow minus capital expenditures. Companies are ranked in descending order based on their free cash flow in dollars.

Top 100 companies with the highest free cash flow yield. • Weighted by free cash flow (highest trailing twelve month) • Holdings capped at 2% for each company at time of rebalance • Reconstituted and rebalanced semi-annually in June and December



FTSE DEVELOPED EX-US INDEX2




500 Companies100 Companies Ranked based on trailing twelve month period.

Free cash flow yield: 9.51%P/E ratio: 11.40 3-year dividend growth3: -1.97%


PACER DEVELOPED MARKETS INTERNATIONAL CASH COWS 100 INDEX



(1)All Indexes shown are Total Return Indexes. Source: Pacer Advisors, FTSE and FactSet. The hypothetical backtested index performance of the Pacer Developed Markets International Cash Cows 100 Index is shown net of fees and reflects the reinvestment of dividends. The annual total expense is 0.65%. The Index was released on 12/19/16. Any data shown prior to this date is hypothetical, retrospectively calculated, and is based on rules-based criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk or market and economic factors that may affect the actual performance. The actual performance of the Index may vary significantly from the backtested index data. The start date for this data was chosen based on the validity of the fundamental data of the FTSE Developed ex-US Index. The results shown are hypothetical and do not reflect actual returns. PAST PERFORMANCE (WHETHER RETROSPECTIVELY CALCULATED OR ACTUAL HISTORICAL) IS NOT INDICATIVE OF FUTURE RESULTS. YOU CANNOT INVEST DIRECTLY IN AN INDEX.


Pacer Developed Markets International Cash Cows 100 Index

FTSE Developed ex-US Index

Annualized Average Return

7.66 4.17

Annualized Volatility

17.61 17.76

Upside Capture

102.95 100.00

Downside Capture

87.43 100.00




Maximum Return

39.86 (2009)

34.80 (2009)

Minimum Return

-32.89 (2008)

-43.60 (2008)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

12/31/2004 12/31/2006 12/31/2008 12/31/2010 12/31/2012 12/31/2014 12/31/2016 12/31/2018


Pacer Developed Markets International Cash Cows 100 Index FTSE Developed ex-US Index




Free Cash Flow Yield

9.01 3.58

P/E Ratio 12.33 16.09

$31,431

$18,854

Retrospectively calculated Pacer Cash Cows Index® performance and historical comparisons. Pacer Developed Markets International Cash Cows 100 Index is net of fees.


CompanyWeight

(%) GICS Sector CountryFree Cash Flow Yield

(%)

Sony Corporation 2.21 Consumer Discretionary Japan 12.11

KDDI Corporation 2.20 Communication Services Japan 7.52

Royal Ahold Delhaize N.V. 2.19 Consumer Staples Netherlands 12.29

NTT DoCoMo, Inc. 2.15 Communication Services Japan 7.74

Itochu Corporation 2.13 Industrials Japan 8.46

Imperial Brands PLC 2.12 Consumer Staples United Kingdom 10.54

BHP Group Ltd 2.08 Materials Australia 7.72

Rio Tinto plc 2.08 Materials United Kingdom 9.58

A.P. Moller - Maersk A/S Class B 2.07 Industrials Denmark 9.96

Samsung Electronics Co., Ltd. 2.04 Information Technology Korea 6.96

Total 21.27



Source: FactSet.Free Cash Flow Yield = Free Cash Flow/Enterprise Value

21.38% Japan

11.98% France

6.03% Korea

4.64% Switzerland

3.99% Italy

12.44% Other

18.55% United Kingdom

7.07% Australia

6.24% Spain

3.45% Germany

4.23% Netherlands


19.27% Materials

14.70% Industrials

10.97% Energy

6.58% Info Tech

0.77% Health Care




3.25% Utilities 0.67% Real Estate





PACER US SMALL CAP CASH COWS INDEX

(1)The individual components of the index are weighted by their total market capitalization. Market capitalization is determined by multiplying each company’s market price by their total outstanding shares. Companies are ranked in descending order based on their market cap in dollars. (2)Financial companies, other than real estate investment trusts (REITs), are excluded from the index universe. In addition, companies with negative free cash flow are excluded based on FactSet analyst consensus estimates using average projected FCF and earnings over the next two years. (3)The 3-year dividend growth is a weighted average of each company’s 3-year dividends per share growth rate. The growth rate is determined by measuring the change between each company’s most recent trailing 12 month dividends per share versus their trailing 12 month dividend per share 3 years ago. (4)Remaining 100 companies are weighted by their trailing twelve month free cash flow. Free cash flow weighting is calculated as a company’s operating cash flow minus capital expenditures. Companies are ranked in descending order based on their free cash flow in dollars.

Top 100 companies with the highest free cash flow yield. • Weighted by free cash flow (highest trailing twelve month) • Holdings capped at 2% for each company at time of rebalance • Reconstituted and rebalanced quarterly



S&P SMALLCAP 600 INDEX2









(1)All Indexes shown are Total Return Indexes. Source: Pacer Advisors, FTSE and FactSet. The hypothetical backtested index performance of the Pacer US Small Cap Cash Cows Index is shown net of fees and reflects the reinvestment of dividends. The annual total expense is 0.59%. The Index was released on 5/29/17. Any data shown prior to this date is hypothetical, retrospectively calculated, and is based on rules-based criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk or market and economic factors that may affect the actual performance. The actual performance of the Index may vary significantly from the backtested index data. The start date for this data was chosen based on available data for the S&P SmallCap 600® Index. The results shown are hypothetical and do not reflect actual returns. PAST PERFORMANCE (WHETHER RETROSPECTIVELY CALCULATED OR ACTUAL HISTORICAL) IS NOT INDICATIVE OF FUTURE RESULTS. YOU CANNOT INVEST DIRECTLY IN AN INDEX.

Retrospectively calculated Pacer Cash Cows Index® performance and historical comparisons. Pacer US Small Cap Cash Cows Index is net of fees.


Pacer US Small Cap Cash Cows Index


Annualized Average Return

13.78 10.12

Annualized Volatility

23.20 22.34

Upside Capture

110.18 100.00

Downside Capture

98.98 100.00




Maximum Return

47.20 (2013)

41.31 (2013)

Minimum Return

-28.73 (2008)

-31.07 (2008)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

12/30/1994 12/30/1998 12/30/2002 12/30/2006 12/30/2010 12/30/2014 12/30/2018

$269,448

$116,975


Pacer US Small Cap Cash Cows Index S&P SmallCap 600® Index




Free Cash Flow Yield

10.48 3.62

P/E Ratio 10.05 17.17






(%)

Michaels Companies Inc 2.45 Consumer Discretionary 10.52

Big Lots, Inc. 2.41 Consumer Discretionary 14.32

United Natural Foods, Inc. 2.27 Consumer Staples 10.07

Meritage Homes Corporation 2.09 Consumer Discretionary 9.59

Veritiv Corp 1.99 Industrials 20.48

UFP Industries, Inc. 1.97 Industrials 8.13

Asbury Automotive Group, Inc. 1.96 Consumer Discretionary 10.73

Owens & Minor, Inc. 1.94 Health Care 13.75

Meritor, Inc. 1.91 Industrials 16.98

Warrior Met Coal, Inc. 1.89 Materials 31.09

Total 20.88

Source: FactSet. TTM = Trailing Twelve Month Free Cash Flow Yield = TTM Free Cash Flow/Enterprise Value

8.43% Health Care

1.39% Real Estate


11.94% Materials

2.22% Energy


29.71% Industrials






PACER EMERGING MARKETS CASH COWS 100 INDEX

(1)The individual components of the index are weighted by their total market capitalization. Market capitalization is determined by multiplying each company’s market price by their total outstanding shares. Companies are ranked in descending order based on their market cap in dollars. (2)Screened based on average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Financial companies, other than real estate investment trusts (“REITs”), companies with a market capitalization of less than $2 billion, and companies whose average daily trading value (“ADTV”) for the prior 90 days does not exceed $5 million are excluded from the Index universe.. (3)The three-year dividend growth is a weighted average of each company’s three-year dividends per share growth rate. The growth rate is determined by measuring the change between each company’s most recent trailing twelve-month dividends per share versus their trailing twelve-month dividend per share three years ago. (4)Remaining 100 companies are weighted by their trailing twelve-month free cash flow. The Index is limited to a maximum of twenty companies from any country or any sector. Free cash flow weighting is calculated as a company’s operating cash flow minus capital expenditures. Companies are ranked in descending order based on their free cash flow in dollars.

Top 100 emerging markets companies with the highest free cash flow yield. • Weighted by free cash flow (highest trailing twelve month) • Holdings capped at 2% for each company at time of rebalance • Reconstituted and rebalanced semi-annually in June and December



FTSE EMERGING MARKETS INDEX2









(1)All Indexes shown are Total Return Indexes. Source: Pacer Advisors, FTSE and Bloomberg. The hypothetical backtested index performance of the Pacer Emerging Markets Cash Cows 100 Index is shown net of fees and reflects the reinvestment of dividends. The annual total expense is 0.70%. The Index was released on 12/8/16. Any data shown prior to this date is hypothetical, retrospectively calculated, and is based on rules-based criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk or market and economic factors that may affect the actual performance. The actual performance of the Index may vary significantly from the backtested index data. The start date for this data was chosen based on the validity of the fundamental data of the FTSE Emerging Markets Index. The results shown are hypothetical and do not reflect actual returns. PAST PERFORMANCE (WHETHER RETROSPECTIVELY CALCULATED OR ACTUAL HISTORICAL) IS NOT INDICATIVE OF FUTURE RESULTS. YOU CANNOT INVEST DIRECTLY IN AN INDEX.


Pacer Emerging Markets Cash Cows 100 Index


Annualized Average Return 7.06 5.13

Annualized Volatility 19.24 20.08

Upside Capture 95.98 100.00

Downside Capture 88.50 100.00




Maximum Return

76.78 (2009)

82.15 (2009)

Minimum Return

-42.17 (2008)

-53.03 (2008)

Retrospectively calculated Pacer Cash Cows Index® performance and historical comparisons. Pacer Emerging Markets Cash Cows 100 Index is net of fees.

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

12/31/2005 12/31/2007 12/31/2009 12/31/2011 12/31/2013 12/31/2015 12/31/2017 12/31/2019


$26,913

$20,673




Free Cash Flow Yield 14.31 4.70

P/E Ratio 10.49 14.10

Dividend Yield 5.15 2.77

Pacer Emerging Markets Cash Cows 100 Index FTSE Emerging Markets Index




CompanyWeight

(%) Country GICS SectorFree Cash Flow

Yield (%)Dividend Yield

(%)

Hon Hai Precision Industry Co., Ltd.

2.35 TaiwanInformation Technology

18.29 4.65

Quanta Computer Inc. 2.11 TaiwanInformation Technology

22.54 4.97

Emirates Telecommunications Group Company PJSC

2.09United Arab Emirates

Communication Services

7.29 6.36

Xiaomi Corp. Class B 2.09 ChinaInformation Technology

9.10 0.00

China Mobile Limited 2.02 ChinaCommunication Services

8.11 6.15

PTT Exploration & Production Plc 2.00 Thailand Energy 21.73 6.51

Anhui Conch Cement Company Limited Class H

1.99 China Materials 15.73 4.13

TATNEFT PJSC 1.98 Russia Energy 11.49 12.76

Oil company LUKOIL PJSC 1.97 Russia Energy 16.00 11.23

Vale S.A. 1.96 Brazil Materials 12.61 3.52

Total 20.56



25.15% China

15.66% Russia

5.50% South Africa

4.17% Thailand

2.09% United Arab Emirates

5.89% Other

15.67% Taiwan14.57% Brazil

5.62% Turkey

2.07% Indonesia

3.61% Mexico


18.27% Materials


3.29% Consumer Discretionary0.34% Health Care

10.07% Industrials

6.21% Utilities

14.27% Info Tech


16.12% Energy




(1)The individual components of the index are weighted by their total market capitalization. Market capitalization is determined by multiplying each company’s market price by their total outstanding shares. Companies are ranked in descending order based on their market cap in dollars. (2)The S&P 900 Pure Growth Index is made up of approximately 150 companies that exhibit strong growth characteristics from the S&P 500 and S&P MidCap 400. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Financial companies, other than real estate investment trusts (“REITs”), are excluded from the Index universe. (3)At the time of each rebalance of the Index, the companies included in the Index are weighted in proportion to their current market capitalization.

Top 50 large- and mid-cap companies with the highest free cash flow yield. • Weighted by market cap• Holdings capped at 5% for each company at time of rebalance • Reconstituted and rebalanced quarterly

WEIGHTED BY MARKET CAP3 Capped at 5%2SECURITY SELECTION1


S&P 900 PURE GROWTH INDEX2


Free cash flow yield: 3.12%P/E ratio: 33.10




50 Companies

PACER US CASH COWS GROWTH INDEX



(1)All Indexes shown are Total Return Indexes. Source: Pacer Advisors and S&P. The hypothetical backtested index performance of the Pacer US Cash Cows Growth Index is shown net of fees and reflects the reinvestment of dividends. The annual total expense is 0.60%. The Index was released on 2/19/19. Any data shown prior to this date is hypothetical, retrospectively calculated, and is based on rules-based criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected its performance, and cannot account for all financial risk or market and economic factors that may affect the actual performance. The actual performance of the Index may vary significantly from the backtested index data. The start date for this data was chosen based on the availability of the constituent data of the S&P 900 Pure Growth Index. The results shown are hypothetical and do not reflect actual returns. PAST PERFORMANCE (WHETHER RETROSPECTIVELY CALCULATED OR ACTUAL HISTORICAL) IS NOT INDICATIVE OF FUTURE RESULTS. YOU CANNOT INVEST DIRECTLY IN AN INDEX.


Pacer US Cash Cows Growth

IndexS&P 900 Pure Growth Index

S&P 900 Index



Upside Capture 99.00 100.00 72.36





S&P 900 Index

Maximum Return

56.48 (2009)

55.40 (2009)

32.48 (2013)

Minimum Return

-29.96 (2008)

-37.48 (2008)

-36.93 (2008)

Retrospectively calculated Pacer Cash Cows Index® performance and historical comparisons. Pacer US Cash Cows Growth Index is net of fees.

$5,000

$50,000

$500,000

12/29/1995 12/29/1999 12/29/2003 12/29/2007 12/29/2011 12/29/2015 12/29/2019


Pacer US Cash Cows Growth Index S&P 900 Pure Growth IndexS&P 900 Index




S&P 900 Index


P/E Ratio 19.58 27.00 22.88

Dividend Yield 1.51 0.65 1.92

$410,108

$149,516

$82,438


Source: FactSet.Free Cash Flow Yield = Free Cash Flow/Enterprise Value





(%)

Lam Research Corporation 5.53 Information Technology 4.22

Apple Inc. 5.24 Information Technology 4.15

QUALCOMM Incorporated 5.21 Information Technology 6.53

Applied Materials, Inc. 5.20 Information Technology 5.06

Broadcom Inc. 5.12 Information Technology 6.07

Dollar General Corporation 5.04 Consumer Discretionary 4.38

Booking Holdings Inc. 4.77 Consumer Discretionary 5.97

Northrop Grumman Corporation 4.71 Industrials 4.54

Lockheed Martin Corporation 4.65 Industrials 5.72

eBay Inc. 4.36 Consumer Discretionary 6.45

Total 49.83

0.86% Health Care


0.94% Utilities1.88% Communication Services


5.84% Materials19.38% Industrials


LIVE PERFORMANCE

Returns less than 1 year are cumulative. Returns greater than 1 year are annualized. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate, so shares may be worth more or less when redeemed or sold. Current performance may be lower or higher than the performance quoted. Visit http://www.paceretfs.com for the most recent month-end performance. Index returns are for illustrative purposes only. Index performance does not reflect any management fees, transaction costs, or expenses. You cannot invest directly in an index. NAV (net asset value) is the value of one share of the Fund calculated daily. The NAV return is based on the NAV of the Fund. It may not reflect the actual return for the investor. Market Price is the price investors can buy and sell ETF shares for in the stock market and is used to calculate market return. It is based on the price at the Cboe listed exchange market close. This is when NAV is determined for most ETFs. If shares trade at another time, the return may differ. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV respectively.

Total Returns (%) as of 6/30/20 Total Returns (%) as of 6/30/20

TickerTotal

ExpensesFund

Inception 1 Month 3 Month YTD 1 Year 3 Year 5 YearSince Fund Inception

Pacer US Cash Cows 100 ETF COWZ 0.49% 12/16/16NAV 2.12 21.41 -12.30 -4.07 3.25 N/A 4.19

Market Price 2.17 21.83 -12.26 -3.84 3.13 N/A 4.17

Pacer US Cash Cows 100 Index 2.19 21.61 -12.45 -3.97 3.57 N/A 4.56

Pacer US Small Cap Cash Cows 100 ETF CALF 0.59% 6/16/17

NAV 8.31 35.33 -12.66 0.21 -1.39 N/A -0.42

Market Price 7.92 34.49 -12.75 -0.30 -1.63 N/A -0.55

Pacer US Small Cap Cash Cows Index 8.41 35.45 -12.67 0.12 -1.28 N/A -0.31

Pacer Developed Markets International Cash Cows 100 ETF ICOW 0.65% 6/16/17

NAV 2.36 14.01 -18.26 -11.86 -1.87 N/A -1.55

Market Price 3.05 15.89 -18.10 -11.38 -1.98 N/A -1.49

Pacer Developed Markets International Cash Cows 100 Index 2.44 14.13 -18.27 -11.40 -1.10 N/A -0.81

Pacer Global Cash Cows Dividend ETF GCOW 0.60% 2/22/16NAV 1.00 11.74 -18.46 -13.85 -1.06 N/A 3.66

Market Price 1.14 12.72 -18.47 -13.88 -1.22 N/A 3.63

Pacer Global Cash Cows Dividend Index 1.14 11.84 -18.50 -13.54 -0.31 N/A 4.48

Pacer Global Cash Cows Dividend Price Return Index 0.60 10.39 -20.72 -17.67 -4.62 N/A 0.13

Pacer US Cash Cows Growth ETF BUL 0.60% 5/2/19NAV 4.43 31.88 0.26 6.53 N/A N/A 4.85

Market Price 3.22 30.94 -0.93 5.25 N/A N/A 3.87

Pacer US Cash Cows Growth Index 4.47 31.99 0.33 6.65 N/A N/A 4.90

Pacer Emerging Markets Cash Cows 100 ETF ECOW 0.70% 5/2/19

NAV 2.42 16.35 -20.85 -13.54 N/A N/A -10.66

Market Price 2.47 13.52 -20.73 -14.10 N/A N/A -10.93

Pacer Emerging Markets Cash Cows 100 Index 2.55 16.39 -20.84 -13.52 1.14 N/A -10.12

www.paceretfs.com

PCR170630_CCPB 6/30/20

877-337-0500 § www.paceretfs.com

Date post:	10-Jul-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

Institutional Presentation PACER CASH COWS INDEX ETF ...€¦ · FOR INVESTMENT PROFESSIONAL USE...

Documents