Should Pacer US Small Cap Cash Cows ETF (CALF) Be on Your Investing Radar?

Core Viewpoint - The Pacer US Small Cap Cash Cows ETF (CALF) provides broad exposure to the Small Cap Value segment of the US equity market, with significant assets under management and a focus on companies with high free cash flow yields [1][7]. Group 1: Fund Overview - CALF is a passively managed ETF launched on June 16, 2017, and has amassed over $4.06 billion in assets, making it one of the larger ETFs in its category [1]. - The ETF targets small-cap companies with market capitalizations below $2 billion, which are associated with higher potential returns but also higher risks [2]. Group 2: Performance Metrics - The ETF seeks to match the performance of the Pacer US Small Cap Cash Cows Index, which employs a rules-based methodology [7]. - As of September 11, 2025, CALF has lost approximately 0.56% year-to-date and has gained about 2.16% over the past year, with a trading range between $32.00 and $48.76 in the last 52 weeks [7]. - The ETF has a beta of 1.10 and a standard deviation of 22.73% over the trailing three-year period, indicating a moderate level of volatility [8]. Group 3: Cost Structure - The annual operating expenses for CALF are 0.59%, which is relatively high compared to other ETFs in the space [4]. - The ETF has a 12-month trailing dividend yield of 1.36% [4]. Group 4: Sector Exposure and Holdings - The ETF has the largest allocation to the Consumer Discretionary sector, comprising about 22.9% of the portfolio, followed by Healthcare and Industrials [5]. - United Airlines Holdings Inc (UAL) represents approximately 2.52% of total assets, with the top 10 holdings accounting for about 19.75% of total assets under management [6]. Group 5: Alternatives - CALF carries a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to the Small Cap Value area [9]. - Other comparable ETFs include the iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value ETF (VBR), which have larger asset bases and lower expense ratios [10].