Pacer ETFs, begun trading the Pacer Global High Dividend ETF (BATS: PGHD) on Tuesday, February 23, 2016. Here is a synopsis of the new ETF:
FUND INFORMATION:
| Symbol: PGHD | Exchange: BATS |
| Name: Pacer Global High Dividend ETF | Net Expense Ratio: 0.60% |
FUND OBJECTIVE:
The Pacer Global High Dividend ETF seeks to track the total return performance, before fees and expenses, of the Pacer Global Cash Cows Dividend 100 Index.
REFERENCE INDEX:
The Pacer Global Cash Cows Dividend 100 Index uses an objective, rules-based methodology to provide exposure to global companies with high dividend yields backed by a high free cash flow yield.
The proprietary methodology is developed by Index Design Group, an affiliate of Pacer Advisors, Inc., the Fund’s investment adviser.
The initial index universe is derived from the component companies of the FTSE All World Developed Large Cap Index. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next 2 fiscal years. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts (REITs), are excluded from the Index universe.
The remaining companies are ranked by their free cash flow yield for the trailing 12 month period. The 300 companies with the highest free cash flow yield are then ranked by their dividend yield. The equity securities of the 100 companies with the highest dividend yield are included in the Index.
At the time of each rebalance of the Index, the companies included in the Index are weighted based on the aggregate amount of dividends distributed by each company for the trailing 12 month period, and weightings are capped at 2% of the weight of the Index for any individual company.
The index is reconstituted and rebalanced semi-annually as of the close of business on the 2nd Wednesday of June and December.
Index Top 10 Country Breakdown (01/29/16):
| United States | 35.48% |
| Switzerland | 8.45% |
| United Kingdom | 7.14% |
| Australia | 6.77% |
| France | 6.44% |
| Hong Kong | 5.47% |
| Spain | 4.66% |
| Germany | 4.39% |
| Japan | 3.46% |
| Singapore | 2.76% |
Index Top 10 Holdings (01/29/16):
| Wal-Mart Stores, Inc. | 2.27% |
| Altria Group, Inc. | 2.20% |
| AT&T Inc. | 2.20% |
| Procter & Gamble Co | 2.16% |
| Philip Morris Intl. Inc. | 2.15% |
| Anheuser-Busch InBev SA | 2.12% |
| Nestle S.A. | 2.07% |
| Iberdrola SA | 2.06% |
| Siemens AG | 2.05% |
| Sanofi | 2.03% |
Index Sector Breakdown (01/29/16):
| Industrials | 16.93% |
| Cons. Staples | 16.60% |
| Materials | 11.90% |
| Telecoms | 11.41% |
| Health Care | 10.60% |
| Cons. Disc. | 10.59% |
| Utilities | 8.40% |
| Info. Tech | 6.97% |
| Energy | 5.79% |
| Financials | 0.82% |
Useful Links:
PGHD Home Page
Category: Equities> Global> Global Dividends/Income
ETFtrack comment:
Here is a comment from Sean O’Hara, Director of Pacer ETFs:
“There are a lot of ETFs out there that focus on dividends, but free cash flow is a strong indication of a company’s health. Higher free cash flow increases the likelihood that a company will be able to continue paying dividends.”