MALVERN, PA — Pacer ETFs recently unveiled the Pacer Developed Markets Cash Cows Growth Leaders ETF (NYSE: EAFG), a fresh addition to its esteemed Cash Cows fund family. This launch marks a pivotal moment for Pacer, as EAFG is the first fund within its portfolio to utilize an MSCI Index for equity screening, signifying a new collaboration with the global index provider.
The EAFG ETF aims to tap into the potential of international large- and mid-cap securities in developed markets, specifically those exhibiting above-average free cash flow margins. By leveraging the Pacer Developed Markets Cash Cows Growth Leaders Index, which screens stocks from the MSCI EAFE Index, the fund seeks to offer investors exposure to companies poised for growth beyond U.S. borders. This strategy complements Pacer’s existing lineup of U.S. large-cap and small-cap growth strategies, broadening the firm’s international growth offerings.
Sean O’Hara, President of Pacer ETF Distributors, highlighted the timeliness of the EAFG launch, noting the growing investor interest in resilient investment strategies amid current market uncertainties such as elevated interest rates and geopolitical tensions. “Our Cash Cows funds’ focus on high free cash flow has proven to be a robust approach, and with EAFG, we aim to extend this strategy to developed markets outside the U.S., providing investors with a novel growth opportunity,” O’Hara stated.
Free cash flow, the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets, is a critical metric for assessing a company’s financial health and its ability to pursue growth opportunities, pay dividends, and reduce debt. Pacer’s emphasis on this measure reflects a strategic approach to identifying companies with solid financial foundations and potential for sustainable growth.
The partnership with MSCI for this fund underscores Pacer’s commitment to innovation and diversification in its product offerings. Joe Thomson, President of Pacer Financial, expressed pride in this milestone, stating, “The launch of EAFG represents not just an expansion of our Cash Cows series but also a significant step forward in our collaboration with MSCI. This initiative is part of our ongoing effort to adapt to market dynamics and provide impactful investment solutions.”
Pacer’s Cash Cows Series, known for its unique investment approach focusing on free cash flow, has experienced remarkable growth, amassing over $34 billion in assets across its nine funds following a 118.2% growth rate in 2023. The introduction of EAFG into this successful series offers investors an innovative avenue to diversify their portfolios with growth-oriented investments in developed markets, reflecting Pacer’s dedication to meeting evolving investor needs with strategic, data-driven solutions.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.