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Is Pacer US Small Cap Cash Cows ETF (CALF) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Pacer US Small Cap Cash Cows ETF (CALF - Free Report) debuted on 06/16/2017, and offers broad exposure to the Style Box - Small Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the 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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Pacer Etfs. CALF has been able to amass assets over $3.52 billion, making it one of the larger ETFs in the Style Box - Small Cap Value. Before fees and expenses, CALF 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.59%, making it one of the more expensive products in the space.
CALF's 12-month trailing dividend yield is 1.28%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For CALF, it has heaviest allocation in the Information Technology sector --about 30.6% of the portfolio --while Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apa Corp (APA) accounts for about 2.38% of total assets, followed by Zoom Communications Inc (ZM) and Devon Energy Corp (DVN).
CALF's top 10 holdings account for about 20.29% of its total assets under management.
Performance and Risk
The ETF has added about 13.32% so far this year and was up about 29.99% in the last one year (as of 06/04/2026). In the past 52-week period, it has traded between $38.82 and $51.21
The fund has a beta of 1.01 and standard deviation of 20.44% for the trailing three-year period. With about 202 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 $13.91 billion in assets, Vanguard Small-Cap Value Index Fund ETF Shares has $35.39 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?
A smart beta exchange traded fund, the Pacer US Small Cap Cash Cows ETF (CALF - Free Report) debuted on 06/16/2017, and offers broad exposure to the Style Box - Small Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the 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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Pacer Etfs. CALF has been able to amass assets over $3.52 billion, making it one of the larger ETFs in the Style Box - Small Cap Value. Before fees and expenses, CALF 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.59%, making it one of the more expensive products in the space.
CALF's 12-month trailing dividend yield is 1.28%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For CALF, it has heaviest allocation in the Information Technology sector --about 30.6% of the portfolio --while Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apa Corp (APA) accounts for about 2.38% of total assets, followed by Zoom Communications Inc (ZM) and Devon Energy Corp (DVN).
CALF's top 10 holdings account for about 20.29% of its total assets under management.
Performance and Risk
The ETF has added about 13.32% so far this year and was up about 29.99% in the last one year (as of 06/04/2026). In the past 52-week period, it has traded between $38.82 and $51.21
The fund has a beta of 1.01 and standard deviation of 20.44% for the trailing three-year period. With about 202 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 $13.91 billion in assets, Vanguard Small-Cap Value Index Fund ETF Shares has $35.39 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.