Pacer US Small Cap Cash Cows 100 ETF retains its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a high quality exposure is rooted in holding stocks with low financial leverage and strong returns on equity. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like overall affordable fees and a favorable lineup success ratio. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

American Eagle Outfitters

Mueller Industries

Signet Jewelers

Newell Brands

Andersons

Insight Enterprises

Owens & Minor

SM Energy

California Resources

DXC Technology

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Pacer US Small Cap Cash Cows 100 ETF earns an Above Average Process Pillar rating. 

The leading factor in the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Strong risk-adjusted performance also bolsters the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. Lastly, the process is limited by the parent firm's five-year retention rate of 52%, which suggests it could do more to hold onto its portfolio managers.

 This strategy, over time, has preferred smaller market-cap companies, compared with others in the Small Value Morningstar Category.  But in terms of style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. Examining additional factor exposure, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy also has had a defensive tilt, with exposure to higher-quality stocks compared with peers in recent years. This means that the fund holds companies that are profitable, growing, and have solid balance sheets. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it weather downturns better than Morningstar Category peers. Compared with category peers, the strategy also had more exposure to the Quality factor in the most recent month. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. This contributes to a higher-risk, higher-reward approach. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in consumer cyclical and energy relative to the category average by 15.7 and 5.4 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and real estate, underweight the average by 22.7 and 6.3 percentage points of assets, respectively. The portfolio is composed of 102 holdings and is less top-heavy than peers. Specifically, 20.6% of the portfolio's assets are concentrated within the top 10 fund holdings, compared to the typical peer's 28.9%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 101% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

Pacer’s team receives a Below Average People Pillar rating. The team benefits from its parent firm's five-year success ratio of 56%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. However, the rating is held back by the instability of management across its parent firm. The firm's asset-weighted manager tenure of seven years suggests it could do more to retain portfolio managers. The combined average five-year excess return of each manager also holds the team back. It suggests that the funds they manage have lagged their respective category's average return.

Below Average

People

In a competitive industry, Pacer doesn't differentiate itself enough, leading to an Average Parent Pillar rating. One notable advantage of Pacer is its below-average fees. On average, the firm's open-end and exchange-traded fund fees fall in the second-lowest quintile of category peers. Pacer has showcased a durable product shelf. This is demonstrated by the firm's three-year risk-adjusted success ratio of 64%, meaning that 64% of its products have both survived and beaten their respective category median on a risk-adjusted basis. A high success ratio indicates good performance and provides insight into a firm’s discipline around investment strategy and product development. Pacer has faced above-average manager turnover in the past five years. This is a concern, as long-term stability tends to support positive results.

Average

Parent

Pacer US Small Cap Cash Cows 100 ETF

CALF tracks an index of 100 companies out of the S&P Small Cap 600 Index selected and weighted by free cash flow.

Janus Henderson Small Cap Growth Alpha ETF

Invesco S&P SmallCap Industrials ETF

Invesco S&P SmallCap Quality ETF

The pint-sized stocks tend to gain momentum in 2H due to the better-than-expected U.S. economic recovery, a resilient consumer base, a fall in inflation and the likelihood of a less-hawkish Fed.

5 Small-Cap ETFs Trading at a 52-Week High

Pacer US Cash Cows 100 ETF

Pacer Emerging Markets Cash Cows 100 ETF

Pacer Global Cash Cows Dividend ETF

Pacer Developed Markets International Cash Cows 100 ETF

MALVERN, Pa.--(BUSINESS WIRE)--Pacer ETFs Surpasses $25B Milestone in Assets Under Management.

Pacer ETFs Surpasses $25B Milestone in Assets Under Management

VettaFi's vice chairman Tom Lydon discussed the Pacer US Small Cap Cash Cows 100 ETF (CALF) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit VettaFi | ETF Trends.

ETF of the Week: Pacer US Small Cap Cash Cows 100 ETF (CALF)

Invest Like The Best: 2 Buffett-Style ETF Bargain Buys

CALF is a free-cash-flow-focused fund providing exposure to 100 small-cap stocks. The ETF has $2.14 billion in assets under management and a 0.59% expense ratio. CALF has the best profitability score out of any small-cap fund I've encountered. Its free-cash-flow-yield screen drives down valuations and overall, it's a better choice than plain-vanilla ETFs.

CALF: Small-Cap Cash Cows Grapple With Slow Sales And Earnings Growth

Alpha Architec U.S. Quantitative Value ETF 

Cambria Shareholder Yield ETF

With an ever-growing list of similar-sounding ETFs to choose from, finding the best is an increasingly difficult task. My report shows the top-rated ETF for each style.

How To Find The Best Style ETFs 2Q23

ARK Innovation ETF

Pacer US Cash Cows Growth ETF

WisdomTree Japan Hedged Equity Fund

WisdomTree Europe Hedged Equity Fund

iShares Edge MSCI Min Vol USA ETF

Vanguard Value ETF

The fund's rapid ascent puts it in rarified air.

Cash Cows ETF Is a Rare Breakout Star

CALF selects 100 small-cap stocks based on free cash flow yield, but weights based on free cash flow dollars. This important distinction gives the portfolio a size and quality boost. Quality is a concern with most small-cap ETFs. However, CALF does it best. Its 8.03/10 Profit Score leads all peers, as does its rock-bottom 8.67x forward earnings valuation.

Buy CALF: It's Moo-Ving In The Right Direction

Pacer Lunt Large Cap Alternator ETF

Pacer Pacific Asset Floating Rate High Income ETF

Pacer BlueStar Engineering the Future ETF

Pacer US Large Cap Cash Cows Growth Leaders ETF

Pacer BlueStar Digital Entertainment ETF

Pacer Industrials and Logistics ETF

Pacer Data And Digital Revolution ETF

MALVERN, Pa.--( BUSINESS WIRE )--Pacer ETFs celebrates an incredible year of growth driven by its suite of strategy-driven, rules-based ETFs, capped off by the outstanding achievement of reaching $19.6 billion in assets as of Dec. 30, 2022. After starting 2022 with $10.2 billion in AUM, Pacer achieved a 92.2% growth rate, nearly doubling its assets. Within the first week of the New Year, Pacer surpassed $20 billion in assets signaling a strong start for 2023.

Pacer ETFs Celebrates Banner Year of Growth in 2022, Crosses $20B to Kickoff New Year

Pacer Cash Cows Fund of Funds ETF

Exchange traded fund investors should consider the benefits of cash cow stocks and how they can enhance their investment portfolios.

Why Investors Should Consider a Free Cash Flow ETF Strategy Today

Cash cow companies provide consistent cash flows and can help strengthen core investment allocations. In the upcoming webcast, Cash Cows: A Simple Pacer ETFs Strategy for Complex Markets, Sean O'Hara, president of Pacer ETFs Distributors, will highlight the benefits of cash cow stocks and how they can enhance financial advisors' client portfolios.

Cash Cows: A Simple Pacer ETFs Strategy for Complex Markets

Value stocks and funds have outperformed all year. CALF is a small-cap value ETF with a solid performance track record.

CALF: Strong Small-Cap Value ETF, Industry-Beating Performance

CALF recently underwent a quarterly reconstitution, resulting in inflation-friendly Energy stocks replacing more speculative ones in the Retail and Biotechnology industries. The Index selects 100 small-cap stocks based on their free cash flow yields, resulting in a portfolio that trades about 50% cheaper on earnings than the S&P SmallCap 600 Index.

CALF: Better Balanced After Latest Reconstitution

SPDR S&P Dividend ETF

SPDR Portfolio S&P 500 Value ETF

Invesco DB US Dollar Index Bullish Fund

Consumer Discretionary Select Sector SPDR Fund

September is historically the worst month of the year for stocks. Investors who are fearing a lull in the ongoing September, may find these ETFs safe.

Fearing a September Lull? Buy These 5 ETFs

WisdomTree U.S. SmallCap Earnings Fund

Legg Mason Small-Cap Quality Value ETF

Vanguard Small Cap Value ETF

Invesco S&P SmallCap Value with Momentum ETF

The small-cap index is now at its cheapest versus the large-cap Russell 1000 since March 2020. according to Jefferies data, as quoted on Reuters.

Small-Cap ETFs: Value Play or Value Trap?

 BlackRock Future Innovators ETF

Roundhill Deep Value

Vanguard Small-Cap Growth

Invesco S&P SmallCap Momentum ETF

The small-cap counterpart iShares Russell 2000 ETF (IWM) outperformed, climbing 10.5% and came as investors scooped up the cheaply valued stocks.

5 Small-Cap ETFs at the Forefront of the Latest Rally

CALF uses a free cash flow yield screen to select 100 securities from the S&P SmallCap 600 Index. Reconstitutions occur quarterly, and the ETF has a 0.59% expense ratio. Investors will find CALF regularly overweights the Consumer Discretionary sector. Specifically, many volatile retail stocks are included like Children's Place and Urban Outfitters.

CALF: A Tough Q2, But Can These Small Cap Cash Cows Rebound?

After rigorous analysis of ~1,000 ETFs, we identified another ETF with quality holdings at cheap valuations. CALF allocates more to highly profitable companies with cheap valuations than IWM. CALF earns our Very Attractive Predictive Fund Rating while IWM earns an Unattractive rating.

Big Upside In Pacer U.S. Small Cap Cash Cows 100 ETF

An exchange traded fund strategy that focuses on cash cows can function as the core foundation for any investment portfolio. In the recent webcast, Why Now is the Time to Focus on Cash Flow and High Free Cash Flow Yield, Sean O'Hara, president of Pacer ETFs, argued that the way many investors traditionally categorize the [.

A Cash Cows ETF Strategy Could Enhance Your Portfolio's Core

As interest rates rise and the growth outlook becomes more uncertain, investors can build out their core portfolio allocations with reliable “cash cow” companies, or firms that have demonstrated consistent cash flows. In the upcoming webcast, Why Now is the Time to Focus on Cash Flow and High Free Cash Flow Yield, Sean O'Hara, president [.

Why Now is the Time to Focus on Cash Flow and High Free Cash Flow Yield

ARK Web x.0 ETF

Roundhill Meme ETF

 Invesco S&P SmallCap Consumer Discretionary ETF

SPDR S&P Retail ETF

The Fed minutes released yesterday rekindled some optimism in the stock market as there were no surprises.

Fed Minutes Rekindle Optimism: 5 ETFs That Surged the Most

CALF is a smart-beta ETF offering exposure to cash-rich U.S. mid- and small-size companies with value characteristics. CALF has a strong tilt toward the value factor coupled with solid quality, which is a positive surprise given that small-size companies tend to deliver lower margins and capital efficiency.

CALF: Mostly Undervalued, Grossly Profitable Small-Size Equities With Caveats

Since we know that a cash cushion is always needed in a rough market, one can easily look at the indicators related to cash flows to measure a company's performance.

Should You Tap Cash Cow ETFs to Counter Volatility?

Pacer American Energy Independence ETF

This year has seen a pivot back to value stocks as inflation and rising rate environments have investors reconsidering high valuation companies. In today's market environments, the best measure of a company's actual value may be a strong, stable free cash flow yield, and Pacer ETFs discusses the benefits to investing in high free cash [.

The Advantages of “Cash Cow” Strategies in Rising Rate Environments

As rates rise and market valuations grow overheated, advisors have once more turned back to value stocks—only to find that traditional methods of evaluating company value need to be updated. In today's markets, stable, strong free cash flow yield may offer a more accurate measure of a company's actual value.

News for Pacer US Small Cap Cash Cows 100 ETF ETF (CALF)