Should Pacer US Small Cap Cash Cows 100 ETF (CALF) Be on Your Investing Radar?

Launched on 06/16/2017, the Pacer US Small Cap Cash Cows 100 ETF (CALF) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Value segment of the US equity market.The fund is sponsored by Pacer Etfs. It has amassed assets over $5.91 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueWith more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.59%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.42%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Consumer Discretionary sector--about 22% of the portfolio. Information Technology and Industrials round out the top three.Looking at individual holdings, Patterson-Uti Energy Inc (PTEN) accounts for about 2.45% of total assets, followed by Qorvo Inc (QRVO) and Insight Enterprises Inc (NSIT).The top 10 holdings account for about 21.92% of total assets under management.Performance and RiskCALF seeks to match the performance of the Pacer US Small Cap Cash Cows Index before fees and expenses. The Pacer US Small Cap Cash Cows Index uses an objective, rules-based methodology to provide exposure to small-capitalization U.S. companies with high free cash flow yields.The ETF has lost about -14.01% so far this year and is down about -19.33% in the last one year (as of 03/07/2025). In the past 52-week period, it has traded between $37.70 and $49.16.The ETF has a beta of 1.20 and standard deviation of 23.66% for the trailing three-year period. With about 101 holdings, it effectively diversifies company-specific risk.AlternativesPacer US Small Cap Cash Cows 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, CALF is a reasonable option for those seeking exposure to the Style Box - Small Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The Avantis U.S. Small Cap Value ETF (AVUV) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While Avantis U.S. Small Cap Value ETF has $14.69 billion in assets, Vanguard Small-Cap Value ETF has $29.62 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pacer US Small Cap Cash Cows 100 ETF (CALF): ETF Research Reports Patterson-UTI Energy, Inc. (PTEN): Free Stock Analysis Report Insight Enterprises, Inc. (NSIT): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis Report Vanguard Small-Cap Value ETF (VBR): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks