Pacer Expands ETF Lineup With New Quality and Income Funds

Pacer ETFs

MALVERN, PA — Pacer ETFs said it has launched three new exchange-traded funds, expanding its lineup of rules-based strategies focused on free cash flow, dividends, research investment, and global revenue exposure.

The firm introduced the Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD), the Pacer S&P 500 Quality FCF High Dividend ETF (QFHD), and the Pacer International Export Leaders ETF (PIEL). Pacer said the additions complete its five-fund S&P Quality Free Cash Flow suite and reflect growing investor demand for disciplined, factor-driven strategies.

QFRD is designed to track the S&P 500 Quality FCF R&D Leaders Index, which includes 50 companies in the S&P 500 with high research and development spending relative to peers while maintaining strong free cash flow margins. Pacer said the fund targets companies reinvesting aggressively in future growth without sacrificing financial discipline.

QFHD tracks the S&P 500 Quality FCF High Dividend Index, which consists of high dividend-paying companies that have maintained consistent payouts for at least five years and meet free cash flow quality requirements. The strategy is intended to focus on dividend sustainability by using free cash flow as a measure of corporate health.

The two funds join Pacer’s existing Quality FCF Aristocrats ETFs covering large-, mid-, and small-cap equities, completing a suite that spans multiple market segments. Pacer said it has launched five funds tied to S&P Dow Jones Indices over the past 12 months.

Rupert Watts, head of factors and dividends at S&P Dow Jones Indices, said the new indexes demonstrate how free cash flow can be combined with other factors to support growth- and income-oriented strategies through transparent, rules-based frameworks.

Pacer also highlighted the recent launch of PIEL, which targets roughly 100 non-U.S. large- and mid-cap companies with high levels of foreign sales and strong free cash flow margins. The fund is aimed at investors seeking international exposure to companies with established global brands and durable balance sheets.

“Our focus in 2026 is providing advisors with a toolkit that is as resilient as it is innovative,” said Sean O’Hara, president of Pacer ETFs. He said the expansion of the Quality FCF and Leaders series reflects the firm’s emphasis on delivering structured strategies aligned with long-term investment objectives.

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