Pacer US Export Leaders ETF (PEXL)
ARCA ARCA Primary Summary
PEXL Chart
PEXL: This S&P 900 Export Leaders ETF Is Flawed
PEXL aims to select 100 U.S. stocks from the S&P 900 Index with a high percentage of annual foreign sales and high free cash flow growth. Unfortunately, the sole measure of a company's free cash flow growth is current year free cash flow per share less free cash flow per share from five years ago. That means PEXL currently holds a large number of companies that operate in industries that essentially shut down during the COVID-19 pandemic, including Carnival and Royal Caribbean Cruises.
Pacer US Export Leaders ETF (PEXL) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has Pacer US Export Leaders ETF ever had a stock split?
Pacer US Export Leaders ETF Profile
| ARCA Exchange | US Country |
Overview
The fund is focused on providing its investors with the opportunity to participate in the potential growth of U.S. companies that have a significant portion of their sales abroad and demonstrate strong free cash flow growth. By investing at least 80% of its assets in the securities that make up its benchmark index, the fund seeks to maintain a well-defined and focused investment strategy. This index, characterized by an objective and rules-based methodology, selects approximately 100 large- and mid-capitalization U.S. companies. These companies are not only engaged in international business, giving them a global footprint, but also show promising growth in free cash flow. Free cash flow, an important financial indicator, reflects the net amount of cash that is available to a company after it has funded its operations and capital expenditures. This metric is crucial for investors as it signifies the company’s ability to pursue opportunities that enhance shareholder value.
Products and Services
The fund offers a distinct investment product that targets specific areas of the financial market with the potential for growth and stability:
- Investment in Component Securities of the Index: The primary offering of the fund is its investment strategy, which allocates at least 80% of its total assets in the securities that constitute the index it tracks. This ensures that the fund’s portfolio is closely aligned with the performance of a select group of U.S. companies that are not only large and mid-sized but also have significant international exposure and demonstrate robust free cash flow growth.
- Objective, Rules-based Methodology: The fund's investment approach is guided by a meticulous, objective, and rules-based methodology that governs the selection of companies for its portfolio. This method focuses on identifying companies that are likely to outperform due to their high percentage of foreign sales and strong free cash flow growth. By concentrating on these criteria, the fund aims to invest in companies with the potential for sustained growth and resilience in various market conditions.
- Focus on Free Cash Flow Growth: Central to the fund’s strategy is its emphasis on companies with high free cash flow growth. Free cash flow, the amount of cash generated by a company after accounting for its operational costs and capital expenditures, is a key indicator of financial health and growth potential. The fund seeks to capitalize on this aspect by investing in companies that demonstrate an ability to generate increasing free cash flow, which is often a signal of a company’s ability to expand, develop new products, pay dividends, or reduce debt.
Contact Information
