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Should Pacer US Small Cap Cash Cows ETF (CALF) Be on Your Investing Radar?
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Launched on June 16, 2017, the Pacer US Small Cap Cash Cows ETF (CALF - Free Report) 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 $3.75 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
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. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Expense 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%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.16%.
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.
This ETF has heaviest allocation to the Consumer Discretionary sector -- about 21.1% of the portfolio. Information Technology and Energy round out the top three.
Looking at individual holdings, Tenet Healthcare Corp (THC) accounts for about 2.69% of total assets, followed by Expedia Group Inc (EXPE) and Anglogold Ashanti Plc (AU).
The top 10 holdings account for about 20.75% of total assets under management.
Performance and Risk
CALF 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 added about 25.24% so far this year and was up about 26.35% in the last one year (as of 09/21/2026). In the past 52-week period, it has traded between $41.61 and $57.92.
The ETF has a beta of 1.01 and standard deviation of 20.33% for the trailing three-year period. With about 200 holdings, it effectively diversifies company-specific risk.
Alternatives
Pacer US Small Cap Cash Cows 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 iShares Russell 2000 Value ETF (IWN) and the Vanguard Morningstar Small-Cap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $14.06 billion in assets, Vanguard Morningstar Small-Cap Value ETF has $36.14 billion. IWN has an expense ratio of 0.24% and VBR charges 0.05%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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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Should Pacer US Small Cap Cash Cows ETF (CALF) Be on Your Investing Radar?
Launched on June 16, 2017, the Pacer US Small Cap Cash Cows ETF (CALF - Free Report) 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 $3.75 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
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. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Expense 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%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.16%.
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.
This ETF has heaviest allocation to the Consumer Discretionary sector -- about 21.1% of the portfolio. Information Technology and Energy round out the top three.
Looking at individual holdings, Tenet Healthcare Corp (THC) accounts for about 2.69% of total assets, followed by Expedia Group Inc (EXPE) and Anglogold Ashanti Plc (AU).
The top 10 holdings account for about 20.75% of total assets under management.
Performance and Risk
CALF 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 added about 25.24% so far this year and was up about 26.35% in the last one year (as of 09/21/2026). In the past 52-week period, it has traded between $41.61 and $57.92.
The ETF has a beta of 1.01 and standard deviation of 20.33% for the trailing three-year period. With about 200 holdings, it effectively diversifies company-specific risk.
Alternatives
Pacer US Small Cap Cash Cows 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 iShares Russell 2000 Value ETF (IWN) and the Vanguard Morningstar Small-Cap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $14.06 billion in assets, Vanguard Morningstar Small-Cap Value ETF has $36.14 billion. IWN has an expense ratio of 0.24% and VBR charges 0.05%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.