For investors seeking momentum, Pacer US Small Cap Cash Cows 100 ETF (CALF Quick QuoteCALF - Free Report) is probably on radar. The fund just hit a 52-week high and is up 37.55% from its 52-week low price of $31.93/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

CALF in Focus

The underlying 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 fund has major allocations to the consumer discretionary sector with 26.3% of the assets of the fund. The product charges 59 bps in annual fees (See: all the Small Cap Blend ETF here).

Why the Move?

Small-cap stocks are closely connected to the domestic economy because their capitalization is influenced by how well the domestic economy is doing. A stronger-than-anticipated rebound in the U.S. economy and a resilient consumer base should provide a strong support to the small-cap stocks in the second half of 2023. Strong performance of the economy suggesting ebbing chances of a recession, due to cooling inflation levels and exceeding earnings results are tailwinds in the space.

More Gains Ahead?

The fund might continue its strong performance given a positive weighted alpha of 17.47.