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Small-cap stocks have roared back to life. After three years of lagging behind larger peers, the Russell 2000 index has surged 10.6% in November as of this writing, reflecting renewed interest in smaller companies.
The Pacer US Small Cap Cash Cows 100 ETF (CALF) was launched on 06/16/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.
The Pacer US Small Cap Cash Cows 100 ETF selects the top 100 stocks in terms of free cash flow out of the S&P SmallCap 600 Index. Zero allocation to financials and utilities has contributed to lackluster returns so far in 2024. Underlying holdings are attractively valued relative to other small and mid-cap ETFs.
The Pacer U.S. Small Cap Cash Cows 100 ETF focuses on the most profitable one-sixth of a major small cap index. This approach has allowed the ETF to significantly outperform the small-cap benchmark for years.
2024 may see the Fed cutting interest rates for the first time, benefiting small capitalization equities via lower cost of funds and higher earnings per share. Pacer US Small Cap Cash Cows 100 ETF tracks top 100 small-cap companies based on free cash flow yield, offering a robust choice for small capitalization equities. The ETF's holdings have compelling valuations with a 11x P/E ratio and potential for significant upside in earnings growth and P/E ratio re-rating in a soft landing scenario.
While large-cap growth stocks continue to lead the market, advisors are looking for alternatives such as small-cap value funds. One of the more popular ETFs this year has been the Pacer US Small Cap Cash Cows 100 ETF (CALF).
The small-cap space has regained momentum as expectations of the Fed cutting rates anytime soon increased following the latest inflation data.
If you're interested in broad exposure to the Small Cap Value segment of the US equity market, look no further than the Pacer US Small Cap Cash Cows 100 ETF (CALF), a passively managed exchange traded fund launched on 06/16/2017.
Making its debut on 06/16/2017, smart beta exchange traded fund Pacer US Small Cap Cash Cows 100 ETF (CALF) provides investors broad exposure to the Style Box - Small Cap Value category of the market.
Pacer US Small Cap Cash Cows 100 ETF is a small-cap value ETF that consistently emphasizes quality and value. Its 0.59% expense ratio is steep, but it's been the second-best-performing SCV fund since its June 2017 launch. However, recent results aren't as strong. The CALF ETF has struggled YTD, leading me to investigate why. My fundamental analysis reveals weak growth is the most likely culprit. I suspect CALF has crossed a "minimum growth" threshold that's caused investors to ignore its strong value and quality metrics, similar to what happened to SCHD.
FAQ
- What is CALF ETF?
- Does CALF pay dividends?
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- What is the current assets under management for CALF?
- What is CALF average volume?
- What is CALF expense ratio?
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