At a glance
HERD charges 0.74% a year. It has $99.9M in assets; it paid 3.38% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +21.9% with distributions reinvested (S&P 500: +11.5%); over three years it returned +18.5% a year. At its worst it fell 37.3% in the 2020 crash (S&P 500: 33.7%) and 21.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 10 months after the lows.
The short version
Pacer Cash Cows Fund of Funds ETF (HERD) is an index fund from Pacer Advisors that owns five other Pacer ETFs, 20% each. Each of those funds picks companies with high free cash flow yields, meaning a lot of spare cash compared with the company's value. HERD applies that one screen to US large, small and growth stocks, developed international stocks and global dividend payers. The trade-off is cost: its expense ratio is 0.74%, which includes the underlying funds' fees.
Price history
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HERD +21.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HERD official prospectus, to Dec 31, 2025 | — | +18.91% | — | +11.94% | — | +11.37% |
| HERD price data to Oct 27, 2026 | +18.2% | +21.9% | +18.5% | +11.0% | — | +13.0% |
- Over the year to Oct 27, 2026, HERD returned +21.9%.
- Its 5-year annualized return was +11.0%.
- In the 2020 COVID crash it fell 37.3% and regained its old high 7.7 months after the low.
- Its worst full calendar year was 2022 (-7.0%); its best was 2021 (+28.5%).
- The deepest fall in its price history was 39.4% (Jan 21, 2020 to Mar 23, 2020), recovered by Nov 19, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +18.3% | — |
| 2025 | +19.1% | +18.91% |
| 2024 | +2.9% | +5.77% |
| 2023 | +20.8% | +17.03% |
| 2022 | -7.0% | -6.75% |
| 2021 | +28.5% | +28.05% |
| 2020 | +10.6% | +11.53% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 37.3% over that stretch · deepest drop along the way 37.3%, back to its old high 7.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17.7% over that stretch · deepest drop along the way 21.6%, back to its old high 9.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5500 | |
| 2025 | $1.6300 | +77.2% |
| 2024 | $0.9200 | -4.2% |
| 2023 | $0.9600 | +20.0% |
| 2022 | $0.8000 | +11.1% |
| 2021 | $0.7200 | +33.3% |
| 2020 | $0.5400 |
What's inside
As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 19.92% of assets, and 80.09% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Pacer Developed Markets International Cash Cows 100 ETF | 19.92% |
By country
United States 19.92%By asset type
Stocks 19.92%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $17K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.46%, -3.01%, +6.12%.
How it works
HERD is an index fund tracking the Pacer Cash Cows Fund of Funds Index, built by Index Design Group, an affiliate of the fund's adviser, Pacer Advisors. Rather than holding stocks, the rules-based index resets to 20% in each of five Pacer ETFs every quarter: US Cash Cows 100, Global Cash Cows Dividend, US Small Cap Cash Cows, US Cash Cows Growth and Developed Markets International Cash Cows 100.
Each ETF's index screens for “cash cows”: companies with a high free cash flow yield. Free cash flow is cash from operations minus capital spending; the yield divides it by enterprise value (market value plus debt, minus cash). Companies with negative projected free cash flow or earnings are dropped, as are financial firms except real estate investment trusts. Three indexes keep their top 100 and weight by free cash flow. The growth index keeps 50, weighted by market value. The global dividend index narrows its top 300 to the 100 highest dividend yields, weighted by dividends paid. Single stocks are capped at 2% (5% in the growth index).
The three US indexes rebalance quarterly; the global and developed-markets ones, twice a year. Because HERD owns other funds, costs stack: its management fee is 0.15%, but total expenses are 0.74%, per the prospectus filed August 27, 2026.
What it really costs
- HERD charges 0.74% a year.
- Of that, 0.15% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $76 in the first year and $918 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HERD | $76 | $237 | $411 | $918 |
In a retirement portfolio
It applies one value-style, free-cash-flow screen across US, small-cap, growth and international stocks, so it behaves differently from a broad fund weighted by company size rather than replacing one.
HERD could add a tilt toward cash-rich companies and a large slice of international stocks to a portfolio built on broad market index funds. It launched in May 2019, so the 2008 crisis is not part of its record. In the 2020 COVID crash it fell 37.3% and took about 7.7 months to recover. Its deepest drop was 39.4%, from January to March 2020. In 2022 it fell 21.6% from peak to trough and needed about 9.5 months to recover. Its worst calendar year was a 6.75% loss in 2022. Someone forced to sell in spring 2020 would have locked in steep losses.
As of October 27, 2026, its trailing 12-month yield was 3.38%. It pays twice a year, so the income comes in lumps. Costs are high for an index fund. In the SEC's standard example, $10,000 would cost about $411 over five years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want one ticker that applies a free-cash-flow screen to US large, small and growth stocks plus developed international markets.
- People willing to pay 0.74% a year to have five Pacer ETFs held at 20% each and rebalanced every quarter for them.
- Holders who can use income paid twice a year; the trailing yield was 3.38% as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: the 0.74% expense ratio puts HERD's own fee on top of the fees of the five Pacer funds it holds.
- Investors who want banks and insurers, since all five underlying indexes exclude financial companies other than REITs.
- Those wanting a longer record or a bigger fund: HERD launched in May 2019 and had about $99.9 million in net assets as of July 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Does HERD pay monthly dividends?
No. HERD pays distributions twice a year. Over the 12 months to October 27, 2026, it paid $1.72 per share, a yield of 3.38%. Because the money arrives in two lumps, retirees who budget month to month may want a cash reserve to fill the gaps. Payouts can change as dividends from the underlying Pacer Cash Cows ETFs rise or fall.
Why is HERD's expense ratio 0.74% when its management fee is 0.15%?
Because HERD is a fund of funds. Pacer Advisors charges a 0.15% management fee, and HERD also pays the costs of the five Pacer Cash Cows ETFs it owns. The prospectus lists a total expense ratio of 0.74%. It also warns that the fund faces "higher and duplicative expenses." In the SEC's standard example, $10,000 earning 5% a year would cost about $76 after one year, $237 after three years and $918 over 10 years.
Is HERD the same as buying the five Pacer Cash Cows ETFs separately?
Close, but not identical. HERD holds the five funds at 20% each and resets those weights every quarter, so one ticker handles the rebalancing. Owning the five funds yourself means doing that rebalancing on your own. But you can choose different weights, and you skip HERD's own 0.15% management fee. You pay the underlying funds' fees either way. As of July 31, 2026, Pacer Developed Markets International Cash Cows 100 ETF (ICOW) made up about 19.9% of HERD, close to its 20% target.
How did HERD do in the 2020 crash and 2022?
It fell hard in 2020 and held up better over 2022 as a whole. In the COVID crash, HERD dropped 37.3% between February 19 and March 23, 2020, and had recovered by November 12, 2020. Its worst quarter was a 28.87% loss in the first quarter of 2020. In 2022 it fell 21.6% from peak to trough. Still, it finished the year down only 6.75%, its worst calendar year since launch. It took about 9.5 months to recover.
What are HERD's long-term returns?
According to its prospectus, as of December 31, 2025, HERD returned 18.91% over one year. Over five years it averaged 11.94% a year, and since its May 2019 launch it averaged 11.37% a year. Calendar years ranged from a 28.05% gain in 2021 to a 6.75% loss in 2022. Based on market prices, it was up 18.2% for 2026 year to date as of October 27, 2026. Past results don't predict future returns.