Pacer ETFs: $4 billion In 4 Years

Sean O’Hara, President, Pacer ETFs Distributors met with Julie Cooling, Founder & CEO, RIA Channel to discuss the firm’s Cash Cows and Trendpilot ETF Series. In just four years, Pacer ETFs has gathered over $4 billion in assets and launched 20 ETFs. The rules-based ETF provider offers a variety of strategies focused around downside protection and screening for quality stocks. Pacer’s Trendpilot ETF Series follows a simple moving average and aims to pick up long term trends in the market. If the particular index has a moving average above 200, the ETF maintains ownership of all of the stocks within the index. If the moving average falls below 200, the holdings migrate to Treasury bills. “The idea is not to be in the market when we go through these catastrophic declines,” says O’Hara. The Cash Cows ETF Series takes broad based indexes, like the Russell 1000, and screens by free cash flow yield. The metric is calculated by dividing the company’s free cash flow by its enterprise value. “We have created a value-based portfolio of high quality stocks,” explains O’Hara. Due to its unique process, the Cash Cows Series offers exposure to different names and sectors than a traditional value fund. O’Hara says, “The diversified value sleeve benefits both the advisor and client.” To learn more about Pacer ETFs Distributors, head here.