Pacer ETFs launches mid-cap and small-cap free cash flow funds

Pacer ETFs announced the launch of two new exchange-traded funds targeting mid-cap and small-cap companies with sustained free cash flow generation. The Pacer S&P MidCap 400 Quality FCF Aristocrats ETF (MCOW) and Pacer S&P SmallCap 600 Quality FCF Aristocrats ETF (SCOW) began trading to expand the firm's Free Cash Flow Aristocrats lineup.

MCOW tracks the S&P MidCap 400 Quality FCF Aristocrats Index, selecting companies with at least seven consecutive years of positive free cash flow. SCOW follows the same methodology for small-cap stocks within the S&P SmallCap 600 Quality FCF Aristocrats Index. Both funds rank eligible companies by free cash flow margin and return on invested capital.

The new funds join Pacer's existing Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW), which launched in May targeting large-cap companies. According to the company, Pacer ETFs manages 60 ETFs with over $40 billion in assets under management as of August 26, 2025.

"With MCOW and SCOW, we're expanding our Free Cash Flow Aristocrats series to offer investors broader exposure to high-quality companies across the market cap spectrum," said Sean O'Hara, President of Pacer ETFs.

The funds are based on indices developed by S&P Dow Jones Indices. Rupert Watts, Head of Factors and Dividends at S&P Dow Jones Indices, stated that the indices "offer a robust framework for identifying high-quality companies across all U.S. market capitalizations."

According to Bloomberg data cited by the company, Pacer ETFs ranked first in net flows across free cash flow-based ETFs in the U.S. from December 31, 2023, to December 31, 2024.

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