Pacer US Small Cap Cash Cows 100 ETF (CALF)

small-cap value cash-flow-focused

Focuses on small-cap U.S. companies with high free cash flow yield. It tracks the Pacer US Small Cap Cash Cows Index, which selects the top 100 companies based on free cash flow yield, excluding financials and real estate firms. This methodology aims to identify potentially undervalued, quality small-cap stocks with strong cash generation. CALF's approach often results in a portfolio tilted towards industrials, consumer discretionary, and information technology sectors. With an expense ratio of 0.59%, it's relatively expensive compared to broad small-cap ETFs, reflecting its more specialized strategy. The fund's performance can diverge significantly from traditional small-cap indices, particularly in markets where growth stocks or lower-quality companies outperform. CALF's focus on cash flow may provide some downside protection during market stress, but it can also lead to underexposure to high-growth, cash-burning companies that sometimes drive small-cap returns.