Mallika Mitra
2 min read
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Pacer ETF is expanding its suite of exchange-traded funds with two new free cash flow funds: the Pacer S&P SmallCap 600 Quality FCF Aristocrats ETF (SCOW) and the Pacer S&P MidCap 400 Quality FCF Aristocrats ETF (MCOW), according to a preliminary prospectus filed with the Securities and Exchange Commission (SEC) on May 9.
SCOW will seek to track the S&P SmallCap 600 Quality FCF Aristocrats Index, which measures the performance of companies in the S&P SmallCap 600 Index that have had positive free cash flow (FCF) for at least seven years in a row, as well as high FCF margin and high FCF return on invested capital. MCOW will seek to track the performance of the S&P MidCap 400 Quality FCF Aristocrats Index, which measures the performance of companies in the S&P MidCap 400 Index that meet the same criteria.
Pacer Advisors will be the funds’ investment adviser, and the effective date, according to the filing, would be July 23, 2025. Management fees weren’t included in the initial prospectus.
Pacer ETF has 52 ETFs and total assets under management of $37.6 billion, according to FactSet data. Its Pacer Cash Cows ETF Series aims to provide investors with capital appreciation over time by screening broad-based indexes to identify quality companies with high free cash flow yield or margin. Some of the funds in this series include the Pacer US Small Cap Cash Cows ETF (CALF), with $4.4 billion in assets under management, and the Pacer US Cash Cows Growth ETF (BUL), which currently houses $78 million of AUM.
“Pacer is excited to work further with S&P as an index provider to potentially deliver additional opportunities to express Free Cash Flow with more of a Quality and Blend exposure,” a spokesperson for the firm told etf.com via an emailed statement.
