CALF ETF

Small-cap stocks have made a strong comeback. After three years of underperforming compared to larger companies, the Russell 2000 index has jumped 10.6% in November, showing a renewed interest in smaller firms.

The Pacer US Small Cap Cash Cows 100 ETF (CALF) was introduced on June 16, 2017. It is a passively managed exchange-traded fund that aims to provide wide access to the Small Cap Value area of the US stock market.

The Pacer US Small Cap Cash Cows 100 ETF picks the best 100 stocks based on free cash flow from the S&P SmallCap 600 Index. The absence of investments in financial and utility sectors has led to disappointing returns in 2024. However, the stocks it holds are considered to be well-priced compared to other small and mid-cap ETFs.

The Pacer U.S. Small Cap Cash Cows 100 ETF targets the most profitable one-sixth of a key small-cap index. This strategy has helped the ETF to greatly exceed the performance of the small-cap benchmark over the years.

In 2024, the Federal Reserve might lower interest rates for the first time, which could help small-cap stocks by reducing funding costs and increasing earnings per share. The Pacer US Small Cap Cash Cows 100 ETF focuses on the top 100 small-cap companies with strong free cash flow, making it a solid option for investors. The ETF's companies are attractively valued, with an 11x price-to-earnings ratio and the possibility of considerable earnings growth and a rise in the P/E ratio if the economy stabilizes.

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.