| Investment Objective: |
The Pacer S&P 500 Quality FCF High Dividend ETF (the "Fund") is an exchange traded fund ("ETF") that seeks to track the total return performance, before fees and expenses, of the S&P 500 Quality FCF High Dividend Index. The Index uses an objective, rules-based methodology to provide exposure to high dividend yielding companies within the S&P 500 Index (the "S&P 500") that have paid dividends for the past five consecutive years while maintaining high free cash flow (FCF) margins and high FCF return on invested capital (ROIC). S&P Dow Jones Indices LLC (the "Index Provider") compiles, maintains and calculates the Index.The Index's universe is derived from the component companies of the S&P 500. The Index's initial universe of companies is screened based on a company's dividend history. To be included in the Index, a company must have paid dividends for the past five consecutive years. Index components are weighted based on LTM dividend yield. However, the Index Provider applies a weighting methodology that limits the LTM dividend yield values used to calculate constituent weights to 10%, subject to security and sector constraints. The maximum weight of each constituent is capped at 4.5% and each constituent's weight is floored at 0.05%. |
