Strategy-based exchange traded fund provider Pacer has listed its Pacer Global High Dividend ETF (PGHD) on BATS ETF market place, which is part of BATS Global Markets (Bats). The move is yet another example of Bats pushing to become a serious contender in the ETF sector.
The fund tracks the total return performance of the Pacer Global Cash Cows Dividends 100 Index and is the sixth ETF offered by Pacer on Bats.
The Pacer Global High Dividend ETF screens stocks from the FTSE All World Developed Large-Cap Index for high dividend yields and high free cash flow yields.
The Pacer Global High Dividend ETF initially employs a screen of the 300 firms in the FTSE All World Developed Large-Cap Index that have the highest free cash flow yield (free cash flow/enterprise value). Of these firms, the 100 with the highest trailing 12-month dividend yields are selected for final inclusion and weighted according to their dividend yield. In this way, the fund seeks enhanced income generation through the selection of firms with high dividend yields, while high free cash flow usually indicates a firm is more likely to sustain its dividend policy as acceptable pay-out levels are often derived from this metric.
Laura Morrison, Senior Vice President, Global Head of Exchange-Traded Products at Bats, commented: “We welcomed Pacer as a new issuer to our market last year and we are excited to expand our partnership with the listing of this new product. We continue to remain focused on creating a marketplace that is targeted to the needs of today’s ETF issuers and investors.”
Pacer has five other funds currently listed on the BATS exchange:
Pacer Trendpilot 750 ETF (PTLC)
Pacer Trendpilot 100 ETF (PTNQ)
Pacer Trendpilot TM European Index ETF (PTEU)
Pacer Trendpilot 450 ETF (PTMC)
Pacer Autopilot Hedged European Index ETF (PAEU)
The Pacer Trendpilot ETF series are based on a trend-following strategy that alternates exposure between a benchmark index and 3-Month US Treasury Bills based on three indicators. The Pacer Autopilot ETF is designed to shift exposure among multiple asset categories (value and growth, and large-, mid-, and small cap) as well as alternate currency hedging exposures, with the intention of capturing shorter term trends.