The firm’s newest fund strategies leverage financial strength and emerging innovation as portfolio solutions to address global uncertainty and economic shifts

Pacer ETFs, the leading U.S. issuer in free cash flow ETFs*, welcomes the launch of two new funds to its ETF lineup with the launch of the Pacer US Cash Cows Bond ETF (CBOE: MILK) and the Pacer Solactive Whitney Future of Warfare ETF (CBOE: FOWF).

“Building on the continued success of the Cash Cows Series, the launch of MILK was a natural next step in expanding our fund line-up,” says Sean O’Hara, president of Pacer ETF Distributors. “The launch of FOWF reinforces our commitment to delivering innovative solutions for investors, providing access to companies at the forefront of critical emerging defense technologies in the U.S. and allied nations,” adds Joe Thomson, president of Pacer Financial.

Following the impressive success of Pacer’s Cash Cows Series, the firm has introduced a new strategy that bridges the appeal of high free cash flow with a fixed-income solution. MILK is a U.S. corporate bond strategy that aims to enhance portfolio yield by capturing the investment universes of the Pacer US Cash Cows 100 Index and/or the Pacer US Large Cap Cash Cows Growth Leaders Index. These indexes encompass two of Pacer’s most successful and fast-growing ETFs—COWZ and COWG.

While traditional bond strategies are limited to the lens of credit ratings in their portfolio exposure, MILK takes a differentiated approach by prioritizing large cap companies with high free cash flow yield and high free cash flow margin. Unlike other bond ETFs that only select investment grade issuances, MILK has the flexibility to pick bonds across the credit scale on the premise that no matter what a company’s credit rating is because of its high free cash flow, it is in a strong position to maintain its interest expense as part of operations.

FOWF is an innovative rules-based fund designed to offer investors capital appreciation over time through exposure to the companies driving the future of national defense and global security. There is a growing shift in demand toward cybersecurity, drone technology, artificial intelligence, and communication networks as technological advancements become central to global defense systems.

To capture this changing market, FOWF employs a unique methodology that weights its portfolio based on Department of Defense (DOD) spending, with a cap of 7.5% and floor of 0.5%. This reflects where capital is actively flowing to support defense priorities, rather than the limited scope of a market weight cap strategy. FOWF’s approach aligns the fund’s portfolio to a long-term growth trend and recognizes leadership in defense and security amongst companies in the U.S. and its allies.

To learn more about Pacer’s strategies and fund offerings, visit paceretfs.com.

*Source: Bloomberg. Number one in net flows across free cash flow based ETFs in the U.S. from 12/31/22-12/31/23.

About Pacer ETFs

Pacer ETFs is a strategy-driven exchange-traded fund provider with 51 ETFs and over $48 billion in assets under management (as of 12/13/2024). Pacer ETFs is focused on addressing investors’ needs through its multiple fund families including, the Pacer Trendpilot® Series, Pacer Cash Cows ETF™ Series, Pacer Custom ETF Series, Pacer Leaders ETF Series, Pacer Factor ETF Series and Pacer Swan SOS ETF Series. Pacer ETFs employs a rules-based, passive management approach to track S&P, NASDAQ, FTSE Russell, and Custom Indexes. For more information, please visit PacerETFs.com.

Disclosures

Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus. A copy may be obtained by visiting www.paceretfs.com or calling 1-877-577-2000. Please read the prospectus carefully before investing.

An investment in the Funds is subject to investment risk, including the possible loss of principal. Pacer ETF shares may be bought and sold on an exchange through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained. The risks associated with these funds are detailed in the prospectus and could include factors such as aerospace and defense industry risk, artificial intelligence companies risk, biotechnology companies risk, calculation methodology risk, concentration risk, currency exchange rate risk, emerging technologies risk, equity market risk, ETF risks, fixed income risk, foreign securities risk, government obligations risk, high yield risk, international operations risk, large capitalization investing risk, management risk, new fund risk, non-diversification risk, passive investment risk, quantum computing and machine learning investment risk, sector risk, tracking error risk, and/or special risks of exchange traded funds.

Vident Advisory, LLC d/b/a Vident Asset Management (“VA” or the “Sub-Adviser”) serves as investment sub-adviser to the Pacer US Cash Cows Bond ETF Fund.

J.H. Whitney Data Services LLC (“J.H. Whitney”) is responsible for selection of the Solactive Whitney Future of Warfare Index components in accordance with the Index methodology.

NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED

Distributor: Pacer Financial, Inc., member FINRA, SIPC, an affiliate of Pacer Advisors, Inc.

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