Is Pacer US Small Cap Cash Cows ETF (CALF) a Strong ETF Right Now?
Overview of Pacer US Small Cap Cash Cows ETF (CALF): Launched in 2017, CALF is a smart beta ETF focusing on small-cap U.S. companies with high free cash flow yields, currently managing over $4.32 billion in assets and featuring an expense ratio of 0.59%.
Performance and Alternatives: The ETF has experienced a decline of approximately -4.85% this year and offers diversified exposure across various sectors, but investors may also consider lower-cost alternatives like iShares Russell 2000 Value ETF and Vanguard Small-Cap Value ETF for potentially better returns.
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JPMorgan's Strategic Move: JPMorgan Chase has hired Todd Combs to lead its $10 billion Strategic Investment Group, part of a broader $1.5 trillion initiative focused on U.S. national security and economic resilience, which includes sectors like manufacturing, energy, and defense technologies.
Impact on ETFs: The Security and Resiliency Initiative (SRI) is expected to drive investor interest in ETFs related to defense, strategic minerals, and advanced technology, with specific funds like the iShares U.S. Aerospace & Defense ETF and VanEck Rare Earth/Strategic Metals ETF likely to benefit.
Long-Term Investment Focus: JPMorgan's initiative is framed as a multi-year effort, supported by a high-profile External Advisory Council, indicating a long-term commitment to enhancing U.S. industrial capacity and technological leadership.
Portfolio Implications for Investors: As JPMorgan aligns its spending with national security and industrial resilience, thematic ETFs in these sectors may become increasingly important for investors looking to capture future capital flows.
New ETF Launches: Pacer ETFs has introduced two new funds, the Pacer S&P MidCap 400 Quality FCF Aristocrats ETF (MCOW) and the Pacer S&P SmallCap 600 Quality FCF Aristocrats Strategy (SCOW), focusing on companies with at least seven consecutive years of positive free cash flow.
Investment Focus and Fees: Both funds aim for capital appreciation with a focus on high free cash flow quality scores; MCOW charges 49 bps and SCOW charges 59 bps in fees, with top holdings in sectors like Information Technology and Consumer Discretionary.

Small-Cap Stocks Gaining Attention: U.S. small-cap stocks are experiencing renewed interest due to favorable tax policies, strong valuations, and bullish technical signals, with ETFs like the iShares Russell 2000 ETF and others showing modest performance gains recently.
Potential for Growth: Despite still lagging behind larger stocks year-to-date, small caps may be poised for a comeback as earnings momentum and favorable market conditions align, presenting an opportunity for investors to capitalize on this underappreciated asset class.
Small-Cap Stocks Performance: Small-cap U.S. stocks, represented by the Russell 2000 index, are showing signs of recovery with an 18.58% increase over three months, nearly matching the S&P 500's performance, although they still lag behind large-cap stocks for the year.
Earnings Growth Comparison: In Q2, small-cap companies reported a 16.9% increase in earnings and 7.8% higher revenues, with a significant proportion beating estimates, indicating potential growth despite ongoing challenges compared to large-cap firms.
Overview of Pacer US Small Cap Cash Cows ETF (CALF): Launched in 2017, CALF is a smart beta ETF focusing on small-cap U.S. companies with high free cash flow yields, currently managing over $4.32 billion in assets and featuring an expense ratio of 0.59%.
Performance and Alternatives: The ETF has experienced a decline of approximately -4.85% this year and offers diversified exposure across various sectors, but investors may also consider lower-cost alternatives like iShares Russell 2000 Value ETF and Vanguard Small-Cap Value ETF for potentially better returns.
Stock Performance: CALF's stock has a 52-week low of $31.50 and a high of $49.59, with the last trade recorded at $41.79.
Market Insights: The article mentions other ETFs that have recently crossed above their 200-day moving average, indicating potential market trends.







