Pacer US Small Cap Cash Cows Growth ETF (CAFG)

Overview

The fund is an investment vehicle primarily focusing on small-capitalization U.S. companies demonstrating above-average free cash flow margins. By adopting a rules-based methodology, the fund aims to provide its investors with strategic exposure to the small-cap sector, which is known for its potential for high growth. Investment in the fund is directed towards securities that are principally traded within the United States, aligning with its objective to leverage the growth dynamics of domestically based small-cap companies. The fund operates with a policy to allocate at least 80% of its net assets, plus any borrowings meant for investment purposes, towards the small-capitalization companies' securities. It is characterized by a non-diversified fund structure, concentrating its investments more heavily in fewer securities, which could result in higher risk and volatility.

Products and Services

• Small-Capitalization U.S. Company Investments

The primary product offered by the fund is its investment in securities of small-capitalization companies that are principally traded in the United States. These companies have been identified by the fund to potentially possess above-average free cash flow margins, a key indicator of a company's ability to generate additional revenue after accounting for the cash outflow to support operations and maintain capital assets. Investing in these companies allows the fund to aim for significant growth and financial gain, leveraging the often dynamic and innovative nature of small-cap entities.

• Rules-Based Investment Methodology

The fund utilizes a rules-based methodology to guide its investment decisions. This systematic approach is designed to objectively select and manage the fund's investments based on pre-defined criteria, focusing on the free cash flow margins of small-capitalization U.S. companies. This methodology aims to reduce the impact of human emotion and bias in investment choices, seeking to provide a more disciplined and consistent investment strategy that aligns with the fund's objectives.

• Non-Diversified Fund Structure

Operating as a non-diversified fund, this product enables the fund to concentrate its investments in a smaller number of securities. While this approach may increase the potential for higher returns, it also exposes the fund to a greater level of risk and volatility. This structure is particularly suited to investors who are looking for higher growth potential and are willing to accept the associated risks. The non-diversified status of the fund allows for a more focused investment strategy, potentially capitalizing on the most promising opportunities within the small-cap sector.