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Is Pacer US Small Cap Cash Cows ETF (CALF) a Strong ETF Right Now?

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The Pacer US Small Cap Cash Cows ETF (CALF - Free Report) made its debut on 06/16/2017, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Value category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

CALF is managed by Pacer Etfs, and this fund has amassed over $3.66 billion, which makes it one of the larger ETFs in the Style Box - Small Cap Value. CALF, before fees and expenses, seeks to match the performance of the Pacer US Small Cap Cash Cows Index.

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.

Cost & Other Expenses

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for CALF are 0.59%, which makes it one of the more expensive products in the space.

It's 12-month trailing dividend yield comes in at 1.04%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

Representing 19% of the portfolio, the fund has heaviest allocation to the Consumer Discretionary sector; Energy and Healthcare round out the top three.

Looking at individual holdings, Halliburton Co (HAL) accounts for about 2.18% of total assets, followed by Cf Industries Holdings Inc (CF) and Biogen Inc (BIIB).

CALF's top 10 holdings account for about 20.04% of its total assets under management.

Performance and Risk

The ETF has lost about -1.35% and is down about -7.41% so far this year and in the past one year (as of 11/24/2025), respectively. CALF has traded between $32.00 and $48.53 during this last 52-week period.

CALF has a beta of 1.11 and standard deviation of 21.65% for the trailing three-year period. With about 203 holdings, it effectively diversifies company-specific risk .

Alternatives

Pacer US Small Cap Cash Cows ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Russell 2000 Value ETF (IWN) tracks Russell 2000 Value Index and the Vanguard Small-Cap Value ETF (VBR) tracks CRSP U.S. Small Cap Value Index. iShares Russell 2000 Value ETF has $11.31 billion in assets, Vanguard Small-Cap Value ETF has $30.72 billion. IWN has an expense ratio of 0.24% and VBR changes 0.07%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Value

Bottom Line

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.

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