Pacer US Cash Cows Growth ETF (BUL)

ETF Pacer US Cash Cows Growth ETF (CALF) Overview

Profile:

CALF is an actively managed ETF that invests in US companies with high free cash flow yields. The ETF focuses on large and mid-cap stocks across various sectors. CALF employs a quantitative model to select stocks with strong fundamentals, consistent cash flow generation, and the potential for future growth.

Objective:

CALF's primary goal is to provide investors with long-term capital appreciation by investing in high-quality companies with sustainable cash flows.

Issuer:

The ETF is issued by Pacer Financial, a US-based asset management firm with over $30 billion in assets under management.

• Reputation and Reliability: Pacer Financial has a strong reputation and track record in the ETF industry. The firm is known for its innovative and actively managed ETF offerings.
• Management: CALF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and stock selection.

Market Share:

CALF has a relatively small market share within the broader US equity ETF landscape.

Total Net Assets:

As of November 2023, CALF has approximately $250 million in total net assets.

Moat:

One of CALF's competitive advantages is its unique investment approach that focuses on high free cash flow companies. This strategy allows the ETF to potentially generate higher returns than traditional market-cap weighted equity ETFs. Additionally, CALF's active management approach allows the portfolio managers to dynamically adjust the portfolio based on market conditions.

Financial performance:

Past Performance: Since inception in June 2022, CALF has generated an annualized return of over 15%, outperforming the S&P 500 index.

Benchmark Comparison: CALF has outperformed its benchmark, the Russell 1000 Value Index, over the past year.

Growth Trajectory:

The ETF's focus on high-quality companies with sustainable cash flows positions it well for future growth, especially in an uncertain market environment.

Liquidity:

• Average Trading Volume: CALF has an average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating good liquidity.

Market Dynamics:

The ETF's performance can be affected by factors such as economic growth, interest rates, and sector performance, particularly within the value and high-dividend-paying stock segments.

Competitors: Other ETFs with similar investment objectives include:

• SPDR S&P 500 High Dividend ETF (SPYD): Market share: 15%
• Vanguard High Dividend Yield ETF (VYM): Market share: 10%

Expense Ratio:

CALF has an expense ratio of 0.59%, which is slightly higher than some of its peers.

Investment approach and strategy:

• Strategy: CALF employs a quantitative model to identify companies with high free cash flow yields, strong financials, and growth potential.
• Composition: The ETF primarily holds large and mid-cap stocks across various sectors.

Key points:

• Focuses on high free cash flow companies.
• Actively managed by experienced portfolio managers.
• Outperformed its benchmark and the broader market in the past year.
• Relatively liquid and has a tight bid-ask spread.

Risks:

• Volatility: The ETF's focus on value and high-dividend-paying stocks may expose it to higher volatility than traditional broad-market equity ETFs.
• Market Risk: The ETF's performance is tied to the performance of its underlying holdings.

Who Should Consider Investing:

CALF is suitable for investors seeking long-term capital appreciation through exposure to high-quality, cash flow-generating companies. It may be a good fit for investors with a value-oriented approach and a higher risk tolerance.

Fundamental Rating Based on AI:

Rating: 8

CALF receives a strong rating based on its unique investment approach, active management team, and track record of outperformance. The ETF's focus on high-quality companies with sustainable cash flows positions it well for future growth. However, investors should be aware of the potential risks associated with the ETF's sector and style focus, as well as its higher expense ratio.

Resources and Disclaimer:

This information is based on data and analysis available as of November 2023. The ETF landscape can change rapidly, so it's crucial to stay updated on the latest developments.

This information is for educational purposes only and should not be considered investment advice. Past performance is not necessarily indicative of future results.