Pacer Cash Cows ETF Returns 8%, 0.26% YTD Cushions Nasdaq-100 Decline
Pacer US Large Cap Cash Cows Growth Leaders ETF returned 8% over the past year while the S&P 500 gained 17.25%, and has added 0.26% year-to-date versus the Nasdaq-100’s 1.14% decline. The fund holds $2.4 billion in assets, 49.2% information technology and 23.4% healthcare, charging a 0.49% expense ratio.
1. Fund Overview
The Pacer US Large Cap Cash Cows Growth Leaders ETF launched December 21, 2022, applies a rules-based screen targeting projected free cash flow yield and above-average earnings growth to build a concentrated portfolio of large-cap U.S. companies, and manages $2.4 billion in assets with a 0.49% expense ratio.
2. Recent Performance
Over the past 12 months the fund returned 8% versus the S&P 500’s 17.25% gain, while year-to-date it has added 0.26% compared with a 1.14% decline in the Nasdaq-100, illustrating its free cash flow focus in cushioning early-year market weakness.
3. Portfolio Composition
The ETF allocates 49.2% to information technology and 23.4% to healthcare, with top positions including Lam Research, KLA, Medpace and Regeneron, and no exposure to financials.
4. Risks and Tradeoffs
Heavy weighting in technology concentration exposes the fund to semiconductor downturns, and a 1.08 portfolio turnover ratio may generate tax drag, while a 0.38% dividend yield offers limited income potential.