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Is Pacer US Small Cap Cash Cows ETF (CALF) a Strong ETF Right Now?
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Launched on 06/16/2017, the Pacer US Small Cap Cash Cows ETF (CALF - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
CALF is managed by Pacer Etfs, and this fund has amassed over $3.2 billion, which makes it one of the larger ETFs in the Style Box - Small Cap Value. This particular fund 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.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
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 1.46%.
Sector Exposure and Top Holdings
While 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 in the Consumer Discretionary sector - about 23.4% of the portfolio. Energy and Information Technology round out the top three.
When you look at individual holdings, Cf Industries Holdings Inc (CF) accounts for about 2.81% of the fund's total assets, followed by Apa Corp (APA) and Devon Energy Corp (DVN).
Its top 10 holdings account for approximately 21.47% of CALF's total assets under management.
Performance and Risk
Year-to-date, the Pacer US Small Cap Cash Cows ETF has lost about -0.65% so far, and it's up approximately 16.89% over the last 12 months (as of 03/30/2026). CALF has traded between $32.00 $46.90 in this past 52-week period.
The ETF has a beta of 1.06 and standard deviation of 20.78% for the trailing three-year period. With about 199 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 Index Fund ETF Shares (VBR) tracks CRSP U.S. Small Cap Value Index. iShares Russell 2000 Value ETF has $12.29 billion in assets, Vanguard Small-Cap Value Index Fund ETF Shares has $31.88 billion. IWN has an expense ratio of 0.24% and VBR changes 0.05%.
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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Is Pacer US Small Cap Cash Cows ETF (CALF) a Strong ETF Right Now?
Launched on 06/16/2017, the Pacer US Small Cap Cash Cows ETF (CALF - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
CALF is managed by Pacer Etfs, and this fund has amassed over $3.2 billion, which makes it one of the larger ETFs in the Style Box - Small Cap Value. This particular fund 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.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
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 1.46%.
Sector Exposure and Top Holdings
While 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 in the Consumer Discretionary sector - about 23.4% of the portfolio. Energy and Information Technology round out the top three.
When you look at individual holdings, Cf Industries Holdings Inc (CF) accounts for about 2.81% of the fund's total assets, followed by Apa Corp (APA) and Devon Energy Corp (DVN).
Its top 10 holdings account for approximately 21.47% of CALF's total assets under management.
Performance and Risk
Year-to-date, the Pacer US Small Cap Cash Cows ETF has lost about -0.65% so far, and it's up approximately 16.89% over the last 12 months (as of 03/30/2026). CALF has traded between $32.00 $46.90 in this past 52-week period.
The ETF has a beta of 1.06 and standard deviation of 20.78% for the trailing three-year period. With about 199 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 Index Fund ETF Shares (VBR) tracks CRSP U.S. Small Cap Value Index. iShares Russell 2000 Value ETF has $12.29 billion in assets, Vanguard Small-Cap Value Index Fund ETF Shares has $31.88 billion. IWN has an expense ratio of 0.24% and VBR changes 0.05%.
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.