Pacer Emerging Markets Cash Cows 100 ETF (ECOW)

Overview

The Pacer Emerging Markets Cash Cows 100 ETF (ECON) aims to provide capital appreciation by investing in the top 100 emerging market companies with high free cash flow yields. It focuses on companies within the emerging markets universe and uses a rules-based strategy to select and weight securities. The ETF's investment strategy revolves around identifying companies that generate substantial free cash flow, indicating financial health and potential for future growth.

Reputation and Reliability

Pacer ETFs is a reputable issuer known for its rules-based, index-tracking strategies. The firm has a solid track record in providing innovative investment solutions.

Management Expertise

Pacer ETFs has a team of experienced professionals specializing in quantitative investment strategies and ETF management.

Goal

The primary investment goal of ECON is to track the performance, before fees and expenses, of the Pacer Emerging Markets Cash Cows 100 Index.

Investment Approach and Strategy

Strategy: ECON tracks a specific index, the Pacer Emerging Markets Cash Cows 100 Index. The index is designed to provide exposure to emerging market companies with high free cash flow yields.

Composition The ETF primarily holds stocks of companies located in emerging markets, selected based on free cash flow yield. The portfolio is rebalanced and reconstituted periodically to maintain its focus on high cash flow generation.

Market Share: ECON's market share within the emerging markets equity ETF category is relatively small compared to larger, more established funds.

Total Net Assets (AUM): 136255887.93

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets equity ETF industry is highly competitive, dominated by low-cost, broad-market ETFs from major providers like Vanguard and iShares. ECON differentiates itself through its focus on cash flow yield, potentially offering a different risk-return profile compared to market-cap weighted funds. However, this niche focus also means it has a smaller AUM and may not appeal to investors seeking broad market exposure. Its higher expense ratio compared to competitors poses a disadvantage.

Historical Performance: Historical performance data should be obtained from reliable sources such as the fund's official website or financial data providers.

Benchmark Comparison: A benchmark comparison would involve comparing ECON's performance against the Pacer Emerging Markets Cash Cows 100 Index and other broad emerging markets indices like the MSCI Emerging Markets Index.

Expense Ratio: 0.49

Average Trading Volume

The ETF's average trading volume is moderate and may fluctuate based on market conditions.

Bid-Ask Spread

The bid-ask spread can vary but is generally competitive, depending on market conditions and trading volume.

Market Environment Factors

Emerging market growth, global trade conditions, currency fluctuations, and commodity prices can all significantly impact ECON's performance.

Growth Trajectory

ECON's growth trajectory is dependent on the performance of emerging markets and the effectiveness of its cash flow-focused investment strategy, with strategic changes potentially occurring to optimize holdings based on market conditions and index methodology.

Competitive Edge

ECON's competitive advantage lies in its focus on free cash flow yield, which could potentially identify financially stable companies with strong growth prospects. This strategy differentiates it from broad market-cap weighted ETFs that may include companies with weaker fundamentals. The rules-based approach ensures a disciplined investment process, reducing the impact of subjective decision-making. By targeting companies with strong cash generation, ECON aims to deliver potentially higher returns and lower volatility compared to its peers.

Volatility

ECON's volatility is likely to be influenced by the volatility of emerging markets and the specific companies it holds.

Market Risk

Specific risks include emerging market political and economic instability, currency risk, and the potential for underperformance compared to broad market indices if the cash flow yield strategy is not successful.

Ideal Investor Profile

The ideal investor for ECON is someone seeking exposure to emerging markets with a focus on companies exhibiting strong financial health and cash flow generation.

Market Risk

ECON is potentially suitable for long-term investors seeking capital appreciation and who are comfortable with the risks associated with emerging markets.

ECON offers exposure to emerging markets companies with strong free cash flow, targeting a different risk-return profile than broad market ETFs. Its rules-based strategy provides a disciplined approach, but the fund's niche focus and higher expense ratio compared to competitors are important considerations. Investors should carefully evaluate their risk tolerance and investment goals before investing. The fund's performance is closely tied to emerging markets' economic conditions and the success of its specific investment strategy.

Data Sources:

• Pacer ETFs official website
• Morningstar
• Bloomberg
• ETF.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share data is an estimate based on publicly available information and may not be exact.